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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
Although there is no specific law regulating the use of crypto currencies in BiH, crypto currency exchange market in RS has flourished due to market interest and certain amendments of the RS Law on Securities, while in FBiH this is not the case as there are no regulation nor any such crypto currency market activities.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
The amendment of RS Securities Market Law introduced the definition of the virtual currency being “a digital record of value that was not issued and whose value is not guaranteed by the central bank or other state authority, which is not necessarily linked to a legal tender payments and does not have the legal status of money or currency, but is accepted by natural and legal persons as a mean of exchange and can be bought, sold, exchanged, transferred and stored electronically”. At the same time, the Securities Commission of RS has adopted relevant by-law prescribing that the providers of the services related to crypto currencies could be either a) legal entity as a locally established company or b) individual that is locally registered as entrepreneur.
The services related to crypto currencies include the following services a) storage and management of virtual currencies on behalf of third parties, b) organizing a platform for trading virtual currencies, c) exchange of virtual currencies for BAM currency, d) exchange of virtual currencies for another virtual currency, e) transfer of virtual currency and f) sale of virtual currencies.
These providers are obliged to register with the Securities Commission and are obliged to have a special purpose account at the local banks with the funds that may be used only for the purchase and sale of virtual currencies and for the purpose of providing services related to virtual currencies.
Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
N/A
Economic conditions
Market size for financial services using crypto currencies and biggest companies in this business area
The market size for financial services using crypto currencies is in it’s developing stages and is still considered small.
Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
N/A