Notification to Hanfa about the provision of exchange services between virtual currencies and fiat currencies and/or the provision of custodian wallet services
On 1 January 2020, persons engaged in the provision of exchange services between virtual currencies and fiat currencies and/or the provision of custodian wallet services and branches of equivalent entities from other Member States and third countries established in the Republic of Croatia in accordance with the law governing their operation (hereinafter: Obliged Entities) became obliged to implement measures, actions and procedures for the prevention and detection of money laundering and terrorist financing set out in the Anti-Money Laundering and Terrorist Financing Act (Official Gazette No 108/17 and 39/19, hereinafter: the Act), pursuant to the provisions of Article 9(2)(17)(k)-(l) and Article 9(3) of the Act.
Virtual currencies are defined by the Act as a digital representation of value not issued and not guaranteed by a central bank or a public authority, which is not necessarily linked to a legally established currency and does not have the legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and it can be transferred, stored and traded electronically.
A custodian wallet provider within the meaning of the Act is a legal or natural person providing the service of safekeeping private cryptographic keys on behalf of their clients for the purpose of holding, storing and transferring virtual currencies.
From 1 January 2020, the Croatian Financial Services Supervisory Agency (hereinafter: Hanfa) is responsible for supervising the implementation of the Act by the Obliged Entities, in accordance with the provisions of Article 82(5) of the Act.
Hanfa does not supervise the legality of the provision of exchange services between virtual currencies and fiat currencies and/or the provision of custodian wallet services, does not grant authorisations to Obliged Entities, licenses to perform the function of a management board member of Obliged Entities, or licenses to acquire qualifying holdings in the Obliged Entities.
Pursuant to Article 9(7) of the Act, Obliged Entities are required to notify Hanfa by 31 January 2020, or no later than 30 days after the date of establishment or registration, of their activities in the provision of exchange services between virtual currencies and fiat currencies and/or the provision of custodian wallet services.
In the event that the Obliged Entities in question fail to inform Hanfa within the prescribed period of their engagement in the provision of exchange services between virtual currencies and fiat currencies and the provision of custodian wallet services, the Act provides for the misdemeanour liability.
In this regard, Hanfa is calling on all entities providing the above-mentioned services to timely submit the information by filling out the registration form available via the link below by e-mail to spnft@hanfa.hr or by post to Hanfa, Franje Račkoga 6, 10 000 Zagreb.