Bosnia, Herzegovina, and Cryptocurrency

Bosnia and Herzegovina Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

There is currently no regulation with respect to the use of cryptocurrencies in Bosnia and Herzegovina.  

The Central Bank of Bosnia and Herzegovina has instructed that the convertible mark (the currency of Bosnia and Herzegovina) is the only legal means of payment in the country, and that it does not allow for the exchange of bitcoins or other cryptocurrencies for convertible marks. At the same time, the Bank stated that there were no plans to limit or prevent the purchase of and trading in virtual currencies.[1]. Nonetheless, it further warned of risks related to cryptocurrencies.  

The Bosnian-Herzegovinian VAT regulations generally work in line with the EU VAT and ECJ rulings.  As such, transactions involving digital assets, token, and cryptocurrencies may be interpreted as financial transactions exempt from VAT.

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:


Podcast:
The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer


Is cryptocurrency legal in Bosnia and Herzegovina?
Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance.  Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] It Is Required to Be Informed in Detail about Cryptocurrencies, The Money Invested Is Not Secured, Vijesti.ba (Jan. 9, 2018), https://vijesti.ba/clanak/389130/o-kriptovalutama-se-potrebno-detaljno-informirati-ulozeni-novac-nije-osiguran (in Bosnian), archived at https://perma.cc/BJ7Y-Q5SJ.

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