Bitcoin & Cryptocurrency Regulation in Bulgaria

Yes. Owning, buying, selling and trading Bitcoin and other crypto-assets is legal in Bulgaria. There is no ban on private individuals or businesses holding or transacting in crypto, and there are no broad foreign-exchange or capital controls that prohibit it. As an EU member that joined the euro area in 2026, Bulgaria applies the EU's harmonised rules on crypto-asset services, anti-money-laundering (AML) and financial markets.

What crypto is not in Bulgaria is legal tender. The only legal currency is the euro; the lev ceased to be legal tender from 1 February 2026. Merchants may choose to accept Bitcoin voluntarily, but no one is obliged to accept it as payment, and crypto carries no state guarantee. In practice crypto is treated as a private asset and, when offered as a service, a regulated financial activity, not as money issued by the state.

Supervision is split between three authorities, each with a defined role:

AML supervision and suspicious-activity reporting involve the State Agency for National Security through its Financial Intelligence Directorate (FID). The FSC has published guidance and a frequently-asked-questions section to explain how it applies MiCA in practice, available on its official site: FSC: Crypto-assets (MiCA) FAQ.

Bulgaria's crypto regulation rests on two layers: directly applicable EU regulation, and Bulgarian implementing law.

• MiCA (Regulation (EU) 2023/1114): The EU's Markets in Crypto-Assets Regulation applies directly in all member states, including Bulgaria. It sets harmonised rules for CASPs such as exchanges, custodians and brokers, and for issuers of asset-referenced tokens and e-money tokens, covering authorisation, governance, disclosures and consumer protection. You can read the official text on EUR-Lex: Regulation (EU) 2023/1114 (MiCA).
• National implementing act: The Bulgarian Parliament adopted the Markets in Crypto-Assets Act (the BG MiCA Act) on 20 June 2025; it entered into force on 8 July 2025. It designates the competent authorities, sets administrative procedures and sanctions, and governs public offerings of crypto-assets, their admission to trading, and the licensing and supervision of CASPs.
• AML/KYC: Before MiCA, crypto businesses were registered under the Measures Against Money Laundering Act regime, then supervised in connection with the National Revenue Agency. The new framework moved crypto from a simple registration system to a comprehensive licensing regime under the FSC, while AML obligations continue to apply.

Because the licensing regime is new and timelines can shift, always confirm current details against the FSC's official publications rather than relying on secondary summaries.

Under MiCA and the BG MiCA Act, any firm offering crypto-asset services to Bulgarian customers on a professional basis (for example exchange between crypto and fiat or between crypto-assets, custody, operating a trading platform, order execution or advice) must be authorised as a crypto-asset service provider (CASP). Authorisation in Bulgaria is granted by the FSC; a CASP licensed in any EU member state can also serve Bulgarian residents through MiCA's passporting mechanism after notifying its home regulator.

A transitional (grandfathering) period applies. Entities that were already registered in the relevant Bulgarian register before the new regime took effect may continue operating during a transition window that runs until 1 July 2026; after that date, a provider that has not obtained an FSC licence must cease the relevant activities. Because deadlines and the status of individual firms can change, check whether a provider is authorised or in the formal transitional process before using it. The FSC maintains official registers; see the Financial Supervision Commission and its registers and checks section. For a broader view of how licensing differs by country, see our global regulation hub.

Bulgaria does not have separate crypto-specific tax legislation; the National Revenue Agency applies the general tax rules, and it has stated that profits from trading cryptocurrencies are taxable. For individuals, gains from disposing of crypto-assets are generally treated as income from the sale of financial assets and taxed at Bulgaria's flat personal income tax rate of 10 percent, which is among the lowest in the EU.

• Taxable events: Selling crypto for fiat and exchanging one crypto-asset for another are generally taxable; mining and staking rewards are typically taxed as income at their value when received. Simply holding crypto is not, by itself, a taxable event.
• Net gain: Taxpayers can generally deduct the acquisition cost and related costs (such as exchange and transaction fees) to arrive at the net taxable gain, and losses may be set against gains within the relevant rules.
• Filing: Individuals report on the annual income tax return, generally by 30 April of the year following the gains, and should keep transaction records.

Exact treatment depends on whether you act as an individual or a business and on your specific facts, and reporting is also affected by evolving EU information-exchange rules. Confirm your situation with the National Revenue Agency (NRA) or a licensed Bulgarian tax adviser. This is general information, not tax advice; see also our crypto taxes guide.

Crypto-asset service providers are obliged entities under Bulgaria's anti-money-laundering framework, which implements the EU AML directives. In practice this means:

• Customer due diligence (KYC): Providers must identify and verify customers, typically requiring an official ID document and often proof of address; enhanced due diligence applies to higher-risk customers.
• Ongoing monitoring: Transactions are monitored for unusual patterns, and providers must keep detailed records.
• Reporting: Suspicious activity is reported to the Financial Intelligence Directorate (FID).

For users, this means you should expect full identity verification when opening accounts on compliant exchanges, and that larger or unusual activity may trigger additional checks. The EU's Transfer of Funds (travel rule) requirements also apply to crypto transfers handled by regulated providers, attaching originator and beneficiary information to transactions.

Bulgarian residents can buy crypto on EU-authorised and international exchanges, through brokers, and via peer-to-peer platforms. A typical, compliant route looks like this:

• Choose a regulated provider: Prefer a MiCA-authorised CASP, or one in the formal transitional process, and check its status with the FSC.
• Open and verify your account: Complete KYC with an ID document and, usually, proof of address.
• Fund in euro: Since the euro changeover, deposits, withdrawals and pricing are normally in euro, with SEPA bank transfers and cards the usual on-ramps.
• Place your order and review fees: Compare trading fees, spreads and withdrawal costs before confirming.
• Decide on custody: Leave assets with the platform for convenience, or withdraw to a private wallet you control (hardware wallets offer stronger security).
• Keep records: Save transaction histories and cost-basis details for your tax return.

Self-custody (holding your own private keys) remains legal and widely used. Bitcoin ATMs and peer-to-peer trades exist in larger cities but generally cost more and carry extra counterparty or fraud risk, so a regulated exchange is usually cheaper and better for record-keeping.

Bitcoin mining is legal in Bulgaria. There is no specific prohibition on running mining hardware, and the activity is treated like any other business that consumes electricity and generates taxable income.

• Electricity cost and supply: Profitability depends heavily on power prices, which have been volatile across Europe. Bulgaria has a mix of nuclear, coal, hydro and growing renewables; miners should secure realistic, contracted rates rather than assume cheap power.
• Tax and registration: Mining rewards are generally taxable income at the 10 percent rate, recognised at their value when received. If carried out as a business, normal registration, accounting and tax obligations apply.
• Grid and environmental rules: Larger operations may face grid-connection requirements and scrutiny over energy use, and EU-level sustainability disclosure expectations for crypto activity are increasing.

Treat any claims that Bulgaria is becoming a major mining hub with caution; the practical economics depend on energy and equipment costs at any given time.

The last two years brought two major changes for crypto in Bulgaria:

• National MiCA implementation (2025): The Markets in Crypto-Assets Act was adopted on 20 June 2025 and entered into force on 8 July 2025, moving crypto from AML-based registration to FSC-supervised licensing. The FSC opened MiCA licensing and, on 28 January 2026, published an extensive FAQ for firms seeking authorisation, covering service categories, application requirements, governance, operational-presence expectations and the transitional arrangements.
• Euro adoption (2026): Bulgaria joined the euro area on 1 January 2026, becoming the 21st member; the lev and euro circulated in parallel for cash during January 2026, and from 1 February 2026 the euro became the sole legal tender. As a result, fiat on-ramps and pricing for crypto are now in euro.

The transitional period for previously registered providers runs to 1 July 2026, after which unlicensed firms must wind down the relevant activities. EU-wide tax-information-exchange rules for crypto are also being phased in. Because these timelines are still landing, verify current status with the FSC.

MiCA raises the standards expected of authorised providers (on governance, disclosures, custody and complaints handling), but it does not guarantee the value of any crypto-asset or protect you from market losses. Key risks remain:

• Market volatility: Prices can rise or fall sharply; you can lose part or all of your money.
• Scams and fraud: Fake exchanges, phishing, impersonation and "guaranteed return" schemes are common. Be wary of unsolicited offers and never share private keys or seed phrases.
• Custody and platform risk: Funds held on a platform depend on its security and solvency.
• Irreversibility: On-chain transactions generally cannot be reversed if sent in error or to a scammer.
• Regulatory and tax change: The framework is new and transitional deadlines are still landing in 2026.

A sensible approach is to use authorised providers, invest only what you can afford to lose, understand what you are buying, and consider speaking with a licensed Bulgarian financial adviser before committing significant funds. You can check whether a provider is authorised or warned about through the FSC's official registers and notices.

Because this is sensitive financial and legal information that changes over time, always confirm the current position with primary, official sources rather than third-party summaries:

• Financial Supervision Commission (FSC) and its Crypto-assets (MiCA) FAQ for CASP authorisation, registers and supervisory guidance.
• Bulgarian National Bank (BNB) for e-money tokens and payments matters.
• National Revenue Agency (NRA) for taxation and reporting of crypto income and gains.
• EUR-Lex: Regulation (EU) 2023/1114 (MiCA) for the EU regulation itself.

This page is general information as of 2026 and is not legal, tax or financial advice; verify your specific situation with the named official regulators, in particular the FSC, or with a licensed Bulgarian professional before acting.

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