SERBIA Trends and Developments Contributed by: Željka Motika, Ivana Bulatović and Jovana Spasojević Gligorijević, Motika i partneri
Digital assets As a candidate country for EU accession, Serbia must progressively harmonise its national legislation with EU law. However, the Serbian regulatory framework for digital assets predates the EU’s Markets in Cryp - to‑Assets Regulation (MiCA) and therefore differs sig - nificantly from the current European approach. Adopted in 2020, the Serbian Law on Digital Assets regulates the issuance of digital assets, the licensing of digital asset service providers, the conduct of mar - ket participants, and the protection of users. Although the law introduced a comprehensive framework at an early stage, its structure and underlying policy choices diverge in several important respects from MiCA. One of the most notable differences concerns the position of financial institutions in relation to digi - tal assets. Under Serbian law, financial institutions supervised by the National Bank of Serbia are entirely excluded from participating in the digital asset market. This category includes banks, insurance companies, financial leasing providers, pension fund management companies, payment institutions, and electronic mon - ey institutions. These entities may not invest in digital assets, hold them on their balance sheets, or provide related services. The sole exception permits the provi - sion of custody services limited to the safekeeping of cryptographic keys. Regarding issuance – covering both virtual currencies and digital tokens – Serbia offers a considerably more accessible regime than MiCA. Digital assets may be issued by any natural or legal person, domestic or foreign, without requiring prior licensing from a super - visory authority. Issuance is based on a White Paper, which must be approved by the competent authority only if the issuer conducts a public offering or advertises the digital asset. For digital tokens, the Securities and Exchange Commission is responsible for review and approval; for virtual currencies, competence lies with the National Bank of Serbia. Security tokens A distinctive feature of the Serbian Law on Digital Assets – particularly relevant for start‑ups and SMEs
Transformation of Regulation Under the Influence of Technology Driven by the rapid development and adoption of new technologies in the financial sector, finance – tradition - ally perceived as a nationally bounded and locally reg - ulated field – has undergone a fundamental transfor - mation. Technological innovation has enabled not only the cross‑border provision of financial services but also the emergence of entirely new business models that previously had no equivalent in traditional finance or within existing legal frameworks. Over the past decade, the most profound changes have been brought about by blockchain technology and the rise of digital assets, both of which have sig - nificantly reshaped financial markets. More recently, these developments have been complemented by the increasing use of artificial intelligence (AI), particularly in areas such as automation, risk assessment, and decision‑making processes. These shifts represent a substantial departure from established regulatory models, primarily due to the introduction of decentralisation into a sector that has historically been highly centralised and strictly regulat - ed. In response, legislators worldwide have intervened to safeguard existing market structures and regulate the conduct of new market participants. Most jurisdictions have adopted a predominantly con - servative approach, extending existing financial ser - vices and capital markets rules to new technologies and market actors, often with only minimal adjust - ments. While this approach has provided a degree of legal certainty, it has also limited the full potential of technologies inherently designed to enable broader participation and more flexible market structures. Serbia has not remained on the sidelines of this global regulatory transformation. Despite the relatively small size of its financial market, the IT sector is one of the country’s most profitable and dynamic industries. Largely due to this technological momentum, Serbia adopted the Law on Digital Assets as early as 2020, positioning itself among the early movers in establish - ing a dedicated digital asset regulatory framework.
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