Crypto license in Bosnia
and Herzegovina

Bosnia and Herzegovina (BiH) consists of two entities (the Federation of BiH and Republika Srpska (RS)) plus Brčko District. Virtual currency services are licensed only in RS, as only the RS authorities have established a regulator for crypto activities. In RS, virtual assets were formally recognised in 2022 (via amendments to the Securities Market Law) and are governed by the national AML/CFT law (amended February 2024). Any operator (exchange, wallet, custodian, etc.) must form a local company and register with the RS Securities Commission (Komisija za hartije od vrijednosti) to provide crypto services.

Regulatory Framework and Scope of License

There are two laws that influence crypto licensing in Republika Srpska. The first is the state-level anti-money laundering and counter-terrorist financing law, more commonly known as AML/CFT. The second, and equally important, is the RS Securities Market Law.

Licensed crypto services include a broad range of activities. Specifically, a licensed Virtual Currency Service Provider (VCSP) in RS may offer:

• Custody/Wallet Services: Holding or managing virtual currencies on behalf of clients (wallet depository services).
• Trading Platforms: Operating an exchange or trading platform for buying/selling virtual currencies.
• Currency Exchange: Converting virtual currencies to/from legal tender.
• Crypto-to-Crypto Exchange: Swapping one virtual currency for another.
• Transfer Services: Receiving and executing orders to transfer or trade virtual currencies on behalf of third parties.
• Token Issuance Services: Assisting with the sale or offering of new virtual currencies (ICO/IEO support services).

Under the RS Securities Market Law, any company planning to offer crypto services must notify the Securities Commission and submit required documentation within 30 days of incorporation.

Advantages of the Republika Srpska Jurisdiction

The RS jurisdiction offers a practical combination of regulatory clarity, competitive operating costs, and access to expanding regional markets.

Transparent cryptocurrency regulation

Aiming for political and economic stability in Bosnia and Herzegovina, the RS applies a robust AML/CFT regulatory framework to companies dealing with virtual assets.

Allowed digital currency activities

One comprehensive license covers a wide spectrum of services. The unified licensing system covers crypto markets, custody wallets, and trading platforms.

Minimal initial capital and low expenses

Registration requires as little as 1000 BAM. Initial expenses can be minimized by utilizing virtual offices. Comparatively affordable pricing for property and administrative services in Bosnia and Herzegovina further reduces operating costs.

Tax convenience

Income tax for local companies is fixed at 10%. The same level is set for individuals.

Integrated banking channels

A licensed company can open a corporate account in a local bank and work with European Electronic Money Institutions (EMIs). This dual access facilitates both fiat operations and international transactions.

Local financial ecosystem

Bosnia and Herzegovina is experiencing a rising interest in digital currencies, creating a strong market environment for newly licensed providers.

Regional markets access

Proximity to the EU allows companies to expand their services without significant extra financial strain.

The combination of these factors makes the RS attractive both for startups and established companies in the digital currency field.

Company Formation & Key Requirements

Applying for a crypto license requires registering a company in the RS first. Forming a d.o.o. (Limited Liability Company) is the most common approach.

Owners

At least one owner must be an individual. This does not require RS residency, but physical presence in the country is necessary for submitting and notarizing the documents.

Authorized capital

Minimum authorized capital is 1000 BAM. You need to put this amount into a special locked bank account in the RS prior to the registration process.

Legal address

You don’t need to rent a physical space. A virtual office service is enough, provided it establishes a registered legal address for the company in the RS.

Necessary staff

Each company must assign an AML Officer (MLRO), responsible for anti-money laundering. This person must be employed under a local employment agreement and be fluent in Bosnian, Serbian, or Croatian. Additional staff requirements include an accountant (outsourcing is allowed).

AML/CFT documentation

You need to get these papers prepared:

• AML/CFT policy;
• risks assessment;
• Know Your Customer or Customer Due Diligence (CDD/KYC);
• data protection policy;
• internal regulations and control procedures.

This is how the regulator will see how your company is going to follow the laws and manage risks.

Other necessary documents

An owner also needs to submit:

• notarized copies of individual passports;
• registration documents;
• power of attorney (if needed);
• participants and directors registries.

Getting a license also requires:

• detailed business plan;
• technical infrastructure summary;
• financial forecast;
• documents proving the owner’s good repute and background.

The regulator pays strict attention to the background and professional reputation of the owners.

Crypto License in Bosnia and Herzegovina Factsheet