Cryptocurrency is legal to own and trade in Bosnia and Herzegovina, though it is not recognized as legal tender by the Central Bank. The convertible mark remains the only official currency, and the Central Bank constantly reminds consumers of the volatility and fraud risks associated with digital assets (1). An Anti-Money-Laundering and Counter-Terrorist-Financing Law that came into effect at the state level in February 2024 defines virtual currencies for the first time and designates Virtual Asset Service Providers as obligated entities required to conduct KYC and report suspicious transactions.
The regulatory landscape differs significantly between the two entities within Bosnia and Herzegovina. In Republika Srpska, virtual currencies are recognized under the Securities Market Law, which was reformed in 2022 to acknowledge virtual asset presence and grant regulatory authority to the RS Securities Commission (2). Providers of services related to virtual currencies in RS must notify the Securities Commission about their activities and apply for registration within 30 days from establishment, and they can only operate after registration is complete.
"The convertible mark and some foreign currencies are the only ones recognised as a legal currency by the Central Bank."
In contrast, the Federation of Bosnia and Herzegovina has not yet legally recognized cryptocurrencies or established a comprehensive regulatory framework for crypto businesses. The FBiH Ministry of Finance confirmed that it does not regulate cryptocurrency exchanges nor recognize cryptocurrencies as a means of payment (1). The Federation's House of Representatives has adopted a resolution urging the government to draft legislation aimed at regulating the cryptocurrency market and establishing clear rules that would safeguard citizens' rights, mirroring the approach taken by Republika Srpska with involvement from the Securities Commission.
Source:
https://coinfomania.com/cryptocurrency-regulation-in-bosnia-and-herzegovina/
https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/bosnia-and-herzegovina
Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
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