Cryptocurrencies and blockchain technology create specific legal and tax risks that are often underestimated. YARD Law Co. advises businesses and individuals on the full range of digital asset legal matters in Bulgaria and the EU.
Holding and using cryptocurrencies generates specific legal and tax risks. While the EU's Markets in Crypto-Assets Regulation (MiCA) and AML rules have created a clearer framework, significant uncertainty remains for end holders - especially in cross-border operations, use of unregulated platforms, or participation in decentralised finance protocols.
In Bulgaria, income from the sale or exchange of crypto assets may be taxable as income from financial asset transactions or other business income, depending on the circumstances. Incorrect or missing declarations can result in administrative penalties, additional tax obligations, and interest charges. For companies, crypto operations also create accounting challenges around asset valuation.
The decentralised nature of crypto often limits legal recourse. In cases of fraud, hacks, or counterparty default - especially on decentralised platforms or via smart contracts - identifying the responsible party or jurisdiction can be extremely difficult.
MiCA applies directly in Bulgaria without additional transposition. We advise on: