MiCA licence in Croatia

Following the introduction of MiCA, Croatia’s regulation of crypto assets has shifted to a centralised model in line with the EU. Supervision of the crypto market is divided between two state bodies: one monitors the activities of crypto asset service providers, and the other oversees stability and supervision in the fields of electronic money and asset-backed tokens. Together, these bodies cover the entire digital market infrastructure, including token issuance and listing, custodial services, exchanges, trading platforms and intermediary operations. MiCA is being implemented in Croatia in stages. The rules relating to electronic value tokens and asset-backed crypto assets are already in force, while those relating to crypto asset service providers came into effect later. Only those organisations operating in the market before the introduction of the new rules are granted a transition period, but they must also undergo the authorisation process within the established timeframe. New companies can only enter the market if they hold a licence.

To obtain a licence, a provider must register a legal entity, demonstrate transparent ownership and management structures, and appoint competent management who can document their experience and business reputation. In the areas of AML and KYC, companies must demonstrate that they have procedures in place for customer identification, transaction monitoring, reporting of suspicious transactions and protection against the use of their infrastructure for illegal transactions. A special condition is the mandatory separation of client funds and company assets, in terms of both cryptocurrencies and cash. This is particularly important for custodians, platforms and storage services. The requirements become even stricter when issuing tokens. The issuer must prepare detailed documentation disclosing the issuance mechanism, the rights and risks of the token, the circulation procedure, the economic model, and the conditions for protecting token holders. Additional standards of stability, liquidity provision and financial control apply to both currency-backed and asset-backed stablecoins. Rather than analysing the technical form of each asset, the regulator considers its merits – a token on the blockchain can be classified as a financial instrument if it provides economic rights similar to securities.

The market is gradually moving towards a structure in which working with crypto assets requires a licence and strict compliance with transparency and other requirements. For businesses, such regulation means in-depth preparation is required, including registration in Croatia, development of internal policies, implementation of security mechanisms and auditing of asset storage and management processes. However, in exchange, companies will have the opportunity to operate legally across the entire European market thanks to the MiCA single regulatory space. For investors and users, such rules increase protection levels, ensure conditions are transparent and build trust in service providers. Croatia is establishing a mature regulatory environment in which crypto projects can develop long-term business models and the market can flourish free from legal uncertainty. The combination of European MiCA regulation and local supervision ensures stability, predictability and a level playing field for participants in the crypto industry. In Croatia, the regulation of crypto assets and service providers is based on the principle of full MiCA standard adaptation through a combination of national legislation and relevant regulator supervision. Responsibility for token issuance is divided between two bodies, with one responsible for this and the other responsible for supervising services that provide crypto asset transactions (exchange, storage, platform trading, custody services, etc.).

Once MiCA comes into force, companies wishing to provide crypto services will need to obtain official authorisation and comply with strict regulatory requirements. Each legal entity must register and disclose its ownership structure and management information, including reputation, qualifications and experience, as well as confirming its ability to manage risks and comply with internal management, security and compliance rules.

In order to operate legally, it will be necessary to implement procedures for identifying and verifying the reliability of customers, monitoring transactions, identifying and preventing suspicious operations, and ensuring the separation of customer and company assets. This is particularly important if the service includes storing crypto assets in wallets, managing keys, and performing custodial functions – in this case, the regulator requires clear accounting, technical protection, and separate procedures for client funds. If the company plans to issue tokens – including utility tokens, stablecoins, and other types of crypto assets – MiCA rules stipulate particularly strict documentation requirements. A white paper or similar document must be developed to describe the rights of token holders, the economic model, risks, and the circulation mechanism, as well as disclosing all necessary information to enable potential investors and holders to understand what they are purchasing. The regulator assesses the economic and legal essence of the asset, not its technological form – that is, whether the token provides real property rights, shares, income, or other privileges similar to those of traditional financial instruments.

Companies providing crypto services (CASP) are subject to capital, internal governance, and transparency requirements similar to those applicable to financial institutions. They must be prepared for audits and internal controls, and for maintaining financial stability, as well as for mandatory reporting and compliance with cybersecurity and customer asset protection standards. The transition period stipulated by MiCA means that companies operating prior to the introduction of the new rules can continue to do so until the deadline, provided they ultimately obtain authorisation. New market participants will only be able to access crypto-asset services after obtaining the relevant permits. For businesses, this model has several key implications. Firstly, thorough preparation of structures, documents and processes is necessary before submitting an application. Secondly, technical and operational stability is paramount, including asset storage, data protection, separation of client funds and AML/KYC compliance. Finally, businesses must understand that the issuance of tokens, the provision of services, and interaction with clients must be based on strict regulatory rules with a high level of transparency and professional management. From the perspective of investors and users, such standards enhance protection, stabilise the market and reduce risk, creating conditions for consistent, lawful and transparent operations. Regulation in Croatia provides a framework for companies to operate within and enables them to do business throughout the EU, provided they comply with the requirements of the Markets in Crypto Assets Regulation (MiCA) and national legislation.

MiCA regulations in Croatia

The Croatian regulator (HANFA) has confirmed that it will apply the criteria developed by ESMA for qualifying crypto assets as financial instruments. This decision establishes a unified European approach to classifying digital assets, removing the long-standing uncertainty in law enforcement. The innovation’s essence is that a token’s assessment is now based not on its technological shell, but on its nature, economic function, and the scope of rights granted to the holder. The regulation is based on the principle that if a token essentially performs the functions of a security – for example, if it provides the right to a share in a company, income, participation in management or reflects other property claims – it should be considered a financial instrument and regulated under MiFID II. Conversely, if the asset does not have the characteristics of a security and does not grant corporate or property rights, but is instead used as a medium of exchange, digital commodity, utility or infrastructure element, it remains subject to MiCA regulation.

Particular attention is paid to hybrid tokens – assets that combine the functions of a financial instrument and a crypto asset. For these, the principle of substance over form applies, meaning that it is the economic meaning, rather than the technical implementation, that is assessed. If the economic component is closer to securities, the asset will be regulated as a financial instrument, even if it is implemented on a blockchain and formally has the characteristics of a crypto asset. This approach protects market participants and enables the regulator to implement stricter supervisory measures where necessary. In practice, this means that issuers and service providers must structure token issuance more carefully and analyse the legal model, documenting which category the asset belongs to. The white paper, placement conditions, issuance mechanism, holder rights, remuneration structure, token distribution and economic model of the project are now subject to mandatory regulatory analysis, influencing the choice of legal regime.

Share capital requirements for MiCA companies in Croatia

• MiCA establishes three categories of crypto service provider with varying regulatory requirements and scope of activity. The first category includes companies that execute client orders, transmit instructions, or provide advisory services but do not hold client crypto assets. For these companies, a minimum capital requirement of €50,000 has been set.
• The second category includes providers that exchange crypto assets and provide custodial storage, giving clients access to digital assets. For these providers, the capital adequacy threshold is significantly higher at €125,000.
• The third category refers to the most complex operators – those who manage trading platforms and provide market infrastructure. These providers must maintain a minimum capital level of €150,000 to reflect the higher risks associated with operating trading systems, ensuring liquidity and protecting customers.

Thus, the choice of CASP licence class directly determines the necessary financial and operational conditions, as well as the depth of regulation when entering the EU market under MiCA.

The HANFA decision enhances legal predictability, providing investors with more transparency and issuers with clear guidance on the regulatory path they need to follow. Projects issuing tokens similar to securities will be regulated under financial market rules, while classic utility tokens, stablecoins, and other digital assets will remain within the MiCA remit. This reduces the risk of abuse, eliminates grey areas, and ensures the rules are applied uniformly across all EU countries. This approach fosters a mature ecosystem, protecting investors while enabling crypto projects to operate within a transparent regulatory framework. Europe is moving towards a model in which technologies are admitted to the market not through exceptions, but through the systematic classification of digital assets. This lays the groundwork for the industry’s long-term growth and boosts confidence in its role as a regulated segment of the financial market.

During his speech at the Challenge of Change conference, HANFA head Ante Žigman emphasised the need to strengthen the regulatory framework and the digital transformation of Croatia’s financial markets, particularly in the context of global competition and rapid technological development. He noted that American capital markets remain far ahead, despite the fact that the US only accounts for a small proportion of global GDP. This indicates a systemic lag in European markets – including Croatia as part of the EU – in terms of access to capital, company growth, and international competitiveness. Žigman stated that, to overcome this lag, Europe must accelerate the integration of capital markets, create favourable conditions for financing companies through the stock market and stimulate the issuance of equity instruments. In this context, the regulation of crypto assets and the introduction of standards such as MiCA are seen as part of a broader strategy to modernise financial infrastructure. New technologies, digitalisation, DLT instruments and tokenisation are not just innovations; they are a means of making markets more accessible, flexible and competitive.

Particular attention was paid to sustainable finance and green transformation. Although Europe is a leader in sustainable investment, it has not yet achieved the targets set for green investment. Therefore, regulation should stimulate investment in green and digital projects to strengthen economic stability and sustainable growth, rather than hinder the transition to sustainable development. For Croatia, this means comprehensive modernisation of both the national capital market and the investment attraction mechanism, including for small and medium-sized businesses. Plans for market development include improving liquidity, stimulating investor interest and increasing the volume of securities or token placements, as well as creating an environment in which digital financial technologies can function on a par with traditional instruments. In conclusion, Žigman emphasised that Europe faces major challenges in transforming its capital markets and in digitalising them. It must also strengthen its regulatory framework, harmonise it with international standards, and ensure that businesses have access to modern financing instruments. For Croatia, this is an opportunity to transform the capital market into an effective growth mechanism for companies, investors, and the economy as a whole by combining innovation, sustainable development, and financial stability.

The following documents are required for CASP companies to obtain a MiCA licence in Croatia:

To obtain a crypto service provider licence (CASP licence under MiCA) in Croatia, a company must prepare a comprehensive package of documents confirming its legal, financial and operational readiness to operate in the digital market. This package includes corporate documentation, financial statements, internal regulations, risk management policies, and customer protection mechanisms. This package must demonstrate that the organisation can work safely with crypto assets without violating storage, transaction execution or AML/KYC risk control requirements. The package is based on the company’s founding documents, registration data, articles of association, corporate structure and ultimate beneficiary disclosure. The regulator analyses the composition of owners and managers, assessing their professional suitability, business reputation and experience in financial services or digital technologies. Each management team member is required to confirm the integrity of their business practices and the absence of criminal convictions, sanctions or violations of regulated legislation.

The second key element is internal policies and operational procedures. The company must provide AML and KYC regulations, a customer identification procedure, a transaction analysis process, rules for identifying suspicious activity and a mechanism for transmitting information to supervisory authorities. The documentation also includes security policies, a description of IT systems, crypto wallet protection, key storage procedures and access recovery mechanisms. If the company performs custodial functions, it must document the separation of client assets and its own funds. A separate section is devoted to the business plan, describing the services provided, the economic model, the target audience, the growth forecast and the operating strategy. This section includes a risk management model, financial indicators, transaction costs, expense and income calculations, a liquidity assessment, technical architecture and support processes. The regulator expects the document to demonstrate the project’s sustainability and its ability to support operations without posing a threat to customers.

The financial section of the package includes audited financial statements, data on the company’s capital, and confirmation of compliance with the minimum capital requirements for the selected CASP licence class. In some cases, a cash flow forecast, a crypto asset accounting policy and confirmation of funding sources are also provided.

If the company plans to issue tokens, it must also prepare a white paper describing the economic nature of the asset, the rights of holders, the risks involved, and how it will circulate. This document must be comprehensive, transparent and based on facts, as it forms the legal basis for the token’s admission to the EU market. Consequently, the MiCA licence application package in Croatia is not merely a formal collection of files, but rather systematic proof of the regulated nature of the business, including corporate transparency, management stability, technical security, and the company’s capacity to safeguard its customers’ interests. The more detailed and accurate the package, the higher the probability of promptly obtaining a licence and being admitted to operate under MiCA throughout the European Union.

Stages of MiCA implementation in Croatia

MiCA is being implemented in Croatia in stages, with regulatory requirements and market access gradually expanding only to companies that meet European standards. The first stage involved the regulatory adoption of the regulation and the transposition of its provisions into the Croatian legal system. The competent authorities were identified: one supervises the activities of crypto service providers and the other is responsible for asset-backed and electronic money tokens. These institutional mechanisms formed the basis for subsequent regulatory implementation.

The second stage came into force when the rules on electronic money tokens and asset-backed tokens began to be applied. Issuers of these instruments must prepare a white paper, disclose their economic model, and demonstrate financial stability. Transparent regulation of stablecoins was required, as their value is pegged to a currency or basket of assets. Any public offerings of assets without the appropriate documentation became impossible.

The third stage began later, when the requirements for crypto service providers became mandatory. Companies engaged in exchange, custody, trading, asset management, consulting and other CASP functions must now obtain a licence. Regulators now require corporate transparency, capital adequacy, robust internal governance and IT frameworks, and formalised AML compliance. This stage also introduced the mandatory separation of client and corporate assets, process documentation and operational security controls. A transition period has been introduced for organisations that began operating before MiCA came into force. They can continue operating for a limited time, provided they obtain a licence and bring their processes into line with the new standards. After this period ends, the market will be open only to licensed companies.

The final stage is the establishment of a sustainable supervisory model. Regular reporting, ongoing compliance monitoring, business model reviews, risk assessments, and ensuring compliance with consumer rights are becoming the norm. Companies that obtain a licence will be able to operate not only in Croatia, but also throughout Europe, thanks to the ‘regulatory passporting’ mechanism which will transform the market into a single financial circuit.

Thus, the implementation of MiCA in Croatia is proceeding through consistent standardisation: first, regulatory adaptation; then, regulation of issuers; then, mandatory licensing of service providers; and finally, a full-fledged regime of ongoing supervision. This creates a stable legal environment for crypto projects, shaping a market where regulation ensures transparency and trust without hindering development.

The taxation of cryptocurrency in Croatia is expected to be introduced in 2025–2026

Cryptocurrencies are considered a type of capital asset in Croatia, and tax is only payable when economic benefits are derived, i.e. when they are sold, exchanged for fiat money or realised in a way that results in a profit. Simply owning and storing digital assets is not subject to tax, and tax liabilities only arise when income is realised. Exchanging one cryptocurrency for another is not considered a taxable transaction in itself unless there is a conversion to fiat currency. When selling cryptocurrency at a profit, capital gains tax is applied at a rate of twelve per cent. However, an important exemption applies: if the digital asset was held for more than two years prior to the sale, no tax is levied. This rule makes long-term storage a profitable strategy for investors focused on growing asset value over time. Certain categories of transactions, such as mining, staking, participating in blockchain validation and receiving rewards in tokens, are considered income rather than capital gains. These types of income are taxed differently because they relate to economic activities that result in the receipt of rewards. If such an asset is subsequently sold, capital gains tax is payable again on the profit. In cases of regular trading or systematic participation in cryptocurrency mining, the activity may be classified as entrepreneurial. This implies paying tax under the business regime and keeping records as a commercial entity rather than a private investor. Taxpayers must record all transactions involving digital assets, including the purchase and sale dates, the volume of assets, the acquisition cost, commission expenses, and the final profit. Such accounting enables the correct determination of the tax base, particularly in the case of multiple transactions. The value of crypto assets is calculated on a first-in, first-out basis, which is an important consideration for long-term investments. Therefore, Croatia’s cryptocurrency taxation system remains favourable for asset holders in the long term, but careful documentation and an understanding of how each transaction is classified are required. For investors, this means the opportunity to optimise their tax burden by holding assets for more than two years. For active traders, it means reporting is required. For businesses, it means forming a comprehensive accounting and taxation model in accordance with the rules.

Tax rates in Croatia in 2025

How can Regulated United Europe lawyers help you obtain a MiCA licence in Croatia?

The process of obtaining a MiCA licence in Croatia requires more than just submitting an application. It also involves thorough compliance with regulatory requirements, preparing evidence, building a corporate structure and implementing internal policies that demonstrate the business’s maturity and manageability. Regulated United Europe lawyers take a systematic approach to achieving results, from the initial design of the company to final authorisation and subsequent support within the framework of supervision. This approach is particularly important given the technical and legal standards required of crypto service providers. The work begins with an analysis of the business model of the future CASP provider. Specialists determine which services require licensing, select the appropriate licence class taking capital requirements into account, and assess the scale of future operations, product architecture, target infrastructure, and the legal status of tokens. At this stage, the optimal ownership structure is formed, the governing body is established and responsible persons who meet the professional suitability criteria are selected. The legal framework of the project is also created at this stage.

Our lawyers then prepare a complete set of documents for submission to the Croatian regulator, including articles of association, corporate information, beneficiary information, internal regulations, an AML policy, KYC procedures, transaction monitoring rules, a methodology for identifying risky clients, a crypto asset storage policy and client fund segregation procedures. If the activity includes custodial services, trading platforms or exchange infrastructure, technical descriptions of the infrastructure, security schemes, asset segregation documentation, incident response plans and IT contour structuring will be prepared. A special section is devoted to the financial part of the application. RUE assists in preparing a business plan with operational metrics, a profitability model and a load forecast, as well as providing an audit of financial statements and capital calculation in accordance with the required licence class. This is important because the regulator assesses the company’s ability to fulfil its obligations to clients and ensure business continuity.

Throughout the process of interacting with the Croatian supervisory authority, the team provides the applicant with full support, participating in official communications, preparing responses to requests, addressing comments, correcting documents and providing explanations on each issue. This makes the licensing process proactive rather than reactive, with predictable results and minimised risk of rejection. Obtaining MiCA authorisation provides access to the European market: a company licensed in Croatia can provide crypto services throughout the EU without needing another licence. Proper legal architecture, document preparation and support at all stages form the basis for quick market entry, without delays and with full regulatory transparency. Regulated United Europe‘s lawyers provide just such a model, reducing the burden on the client’s team and turning licensing into a tool for scaling up the business rather than a bureaucratic barrier.