Bulgaria Tightens Cryptocurrency Regulations with New Law
Bulgaria has followed Hungary's lead in implementing stricter regulations for cryptocurrency exchanges and users. A new law passed by the Bulgarian parliament on September 9 requires cryptocurrency exchanges to provide detailed information about their clients, including personal data and transaction records.
The law is part of the EU's efforts to crack down on tax evasion and money laundering through cryptocurrencies. Bulgaria has ratified the OECD Crypto-Asset Reporting Framework (CARF), which aims to automatically exchange information between countries to combat tax avoidance.
Similar regulations are already in place in Hungary, where cryptocurrency exchanges must register with the National Tax and Customs Administration (NAV) and provide client data. The Hungarian government has also implemented a temporary ban on unlicensed cryptocurrency exchanges.
The EU's DAC8 directive requires member states to automatically exchange information about cryptocurrencies from January 2026. Bulgaria is ahead of schedule, having already implemented the CARF in April this year.