TerraLex Cross-Border Guide to Crypto Assets

Slovakia follows the European Union’s regulatory framework known as the Markets in Crypto Assets Regulation (the “MiCA Regulation”), which establishes a unified approach to governing crypto-assets across all EU countries.

Under the MiCA Regulation, crypto assets are described as a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology.

The MiCA Regulation classifies these assets into three primary groups:

• Asset-Referenced Tokens
• Electronic Money Tokens
• Utility Token.

Neither the EU´s MiCA Regulation nor Slovak legislation explicitly defines the legal status of crypto assets. Given the characteristics of crypto assets they may be considered as property and can be the subject of civil law relations. As they do not fall under the traditional definitions of "things" or "rights," they may be classified as "other property values."

Crypto assets are not legal tender in Slovakia.

Yes, under the EU´s MiCA Regulation. It establishes a harmonized legal framework for the issuance, offering, and provision of services related to crypto assets across the European Union.

To harmonise the Slovak law with the MiCA Regulation, a national regulation was adopted - **Act No. 248/2024 Coll. on Certain Obligations and Authorisations in the Field of Crypto Assets **and on amendment and supplementation of certain acts (the “Act“). The Act contains provisions that are necessary for the smooth application of MiCA Regulation in Slovakia. Thus, the Act regulates only some of the rights and obligations of persons directly covered by the MiCA Regulation and the supervision of those persons in Slovakia to the extent under the MiCA Regulation.

The Act addresses the competence of the National Bank of Slovakia as the designated competent supervisory authority and its powers and provides for sanctions for breaches of MiCA Regulation or the Act.

The National Bank of Slovakia (the “NBS”), Slovakia’s central bank and main financial supervisory authority, is responsible for overseeing compliance with the obligations set outin the MiCA Regulation.

The NBS is empowered to grant licenses to issuers of asset-referenced tokens and crypto-asset service providers, monitor compliance and impose sanctions for breaches of MiCA Regulation obligations.

Yes. Crypto asset service providers, except for those providing advice on crypto assets (Article 3(1)(24) of the MiCA Regulation), are considered “obliged persons” under Slovak Act No. 297/2008 Coll. on the Protection Against Money Laundering and Terrorist Financing and on Amendments to Certain Acts, as amended (the “AML Act”). As such, they are required to perform customer due diligence and comply with other obligations set out in the AML Act.

The AML Act also sets out specific provisions for crypto asset service providers (excluding those providing crypto asset advisory services), following the transposition of Article 19b of the 4th AML Directive (2015/849), as amended. These provisions regulate the conditions under which crypto-asset service providers may enter into a cross-border correspondent relationship with a peer institution offering similar services, including crypto asset transfers.

When establishing such a business relationship, crypto asset service providers are required to conduct, in addition to basic due diligence, further specified measures in relation to the partner institution. They are also obliged to regularly update the data obtained on the partner institution, particularly when new risks arise.

Slovakia does not have standalone legislation specifically regulating blockchain technology. However, EU regulations apply, e.g. the MiCA Regulation, Digital Operational Resilience Act (DORA).

In Slovakia, income from the sale of crypto-assets is taxed under Act No. 595/2003 Coll. on Income Tax, as amended. The sale of a crypto asset includes:

• the exchange of a crypto asset for property,
• the exchange of a crypto asset for another crypto-asset,
• the exchange of a crypto asset for the provision of a service,
• the transfer of a crypto asset for consideration.

Income from the sale of inherited or gifted crypto assets is also subject to taxation.

A taxpayer may reduce their taxable income from the sale of crypto assets by the demonstrable expenses incurred to acquire them. In the case of crypto assets acquired by inheritance or gift, the taxpayer may include in expenses the actual costs associated with acquiring the crypto asset.

The tax rates vary depending on the taxpayer and their tax base. The following rates apply for the year 2025:

• 10% / 21% / 24% for legal entities,
• 15% / 19% / 25% for individual entrepreneurs, and
• 19% / 25% for non-business individuals.

In addition, individuals are required to pay a 15% health insurance contribution on income earned from the sale of crypto assets.

Not explicitly, but given the characteristics of crypto-assets they may be considered as property. As they do not fall under the traditional definitions of "things" or "rights," they may be classified as "other property values."

When it comes to conflict of laws, Slovakia applies the rules of private international law, primarily governed by:

• Rome I Regulation applicable law for contractual obligations and
• Act No. 97/1963 Coll. on Private International Law and Procedure, as amended which provides conflict rules for civil and commercial matters not governed by EU law.

Specific provisions for crypto-assets are currently absent from Slovak and EU conflict-of-law legislation. Determining applicable law may require interpretation of general principles and because of the decentralized and non-territorial characteristics of crypto-assets identifying the applicable law can be challenging.

Slovak law does not explicitly regulate smart contracts. However, to be considered legally binding, an electronic contract must meet the general requirements under Slovak law, which include:

• Mutual consent of the parties,
• Legal capacity of the parties,
• A lawful and possible subject matter,
• Sufficiently definite terms to establish rights and obligations,
• The ability to record and store the content of the legal act,
• Verifiability of the identity of the party performing the legal act, and
• The ability to attach or record the signature of the acting party.

Slovak law does not regulate the taking of security over crypto assets.

Crypto assets may be recognized as "other property values", which are eligible to be the subject of civil law relations. Therefore, the establishment of a pledge over crypto-assets could be potentially feasible, provided it is structured in a manner that aligns with existing legal formats, such as a pledge over a claim, or other assignable right. In any case, at this point, it remains uncertain whether crypto assets can be pledged.

Also, the practical enforceability of such a pledge may present challenges, particularly with respect to:

• Control or access to private keys or other custody issues;
• Identifiability of the pledged crypto-assets;
• Cross-border or decentralized storage;
• Absence of a dedicated legal or registry framework for pledging such assets.

No.

No new national legislation is expected following the adoption of the MiCA Regulation, except for measures issued by the supervisory authority (the National Bank of Slovakia) to implement and supervise its application.

Yes, there is an EU-wide approach to crypto assets that also applies in Slovakia. This is mainly set out in the MiCA Regulation.

Given the extensive legislation on crypto-assets and numerous supplementary guidelines and recommendations, the National Bank of Slovakia (NBS) makes a strong effort to publish relevant information and guidance on how to approach activities involving crypto-assets.

One of its initiatives is a pre-licensing meeting offered to applicants interested in applying for authorization to operate as a crypto-asset service provider. The aim of this meeting is to:

• Clarify which specific crypto-asset services, based on the applicant's business model, need to be applied for,
• Discuss the details of regulatory requirements with the NBS,
• Explain the steps both the NBS and the applicant will follow throughout the licensing process.

This helps identify and address any potential shortcomings in the application in advance, which can significantly shorten the duration of the licensing procedure.