The Law on Digital Property, which regulates the field of digital property and operations in Serbia, came into effect today.
The Republic of Serbia is among the first countries in the world which, thanks to the adoption of said law, have created a regulatory framework for the field of digital property, not just by providing a clear framework and legal security for investors and users of digital property, but also by sending a signal to the world that Serbia is becoming a fintech country, the Ministry of Finance announced.
The Law on Digital Property enables financing through investment tokens, upgrades and develops the capital market through the use of digital technology and strengthens the framework for countering misuse in the digital property market, as well as money laundering and financing of terrorism, the press release adds.
In line with that, the Law on Digital Property regulates the questions of issuing digital property and secondary trade with digital property in the Republic of Serbia, the provision of services related to digital property, lien and fiduciary rights on digital property, the competence of the Securities Commission and the National Bank of Serbia, as well as the supervision of the implementation of the law.
According to the law, digital property, that is, virtual property is “a digital inscription of the value which can be that can be bought, sold, exchanged or transferred digitally and which can be used as a means of exchange or for the purpose of investment, whereby digital property does not include digital inscriptions of currencies which are legal tender and other financial property which is regulated by other laws, unless otherwise regulated by this Law.”
There are two kinds of digital property: virtual currency and digital token. Digital tokens are especially important as a form of alternative financing of young and innovative companies and startups. Virtual currencies, with bitcoin as the most prominent example on the global level, are innovative means of exchange, which are not issued or guaranteed for by central banks, unlike traditional money.
Regarding the question of issuing digital property, the institution of a “white paper” is introduced, which, in line with the international practice, is a document which the issuer is obliged to publish and which contains the data which enable investors to make a decision on investing and estimate the risks related to investing in digital property.
When it comes to the providers of services related to digital property, the law introduces the institution of a permit, as well as the minimum basic capital that the business entity needs to have when applying for the permit for the provision of digital property services.
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