Cross-Border Provision of Crypto-Asset Services

The legal framework applicable in the Slovak Republic, as part of the European Union, allows financial market entities to operate throughout the European Economic Area based on a simplified process that does not require obtaining a separate license in each Member State. This is enabled by the so-called European passport, and the process is referred to as passporting. It grants entities the right to conduct business freely based on the freedom to provide services or the freedom of establishment, using a single, simplified notification procedure. The specific rules for cross-border provision of crypto-asset services are set out in Article 65 of the MiCA Regulation.

The same principles apply across several financial market sectors and are based on the provisions of the Treaty on the Functioning of the European Union (TFEU). For cross-border financial services, the Principle of Home Country Control (HCC) generally applies, meaning that the home supervisory authority is responsible for overseeing the activities of the supervised entity in other Member States.

The supervisory authority of the host Member State (where the services are provided) exercises supervision only in certain limited areas, primarily anti-money laundering and counter-terrorist financing (AML/CFT) and general good rules, which are specific to each Member State. These are examples of exceptions to the Principle of Home Country Control.

Freedom to Provide Services

The freedom to provide services for legal entities established in one of the EU/EEA Member States is enshrined in Articles 56 to 62 of the TFEU. In this case, the entity remains based in its home country and provides its services cross-border without establishing a local branch. Notification of the intent to provide services is submitted first to the home country’s supervisory authority, which then informs the competent authority in the Member State where the services are to be provided.

Freedom of Establishment

The freedom of establishment for legal entities in any EU/EEA Member State is governed by Articles 49 and 50 of the TFEU. This refers to cases where services are provided in another Member State through a local presence, such as a branch or office. Notification of the intent to establish a branch is submitted to the supervisory authority of the home Member State, which then communicates with the supervisory authority of the host Member State where the services will be offered.

Notification Procedures for Authorized Entities

• Domestic entities based in the Slovak Republic (communication via: crypto@nbs.sk).
  Before submitting an official notification, we recommend arranging a pre-notification meeting to clarify intentions and procedures.
• Foreign entities based outside the Slovak Republic that wish to provide their services in Slovakia must contact the supervisory authority of their home Member State, which will then take the necessary steps on their behalf.

Register of Financial Entities

A list of both domestic and foreign crypto-asset service providers and other entities authorized to operate in the Slovak Republic under the MiCA Regulation will be available on the NBS website in the register of financial entities starting from 30 December 2024.

General Good Rules

The freedom to provide services and the freedom of establishment are not absolute rights and may be limited when necessary to protect the public interest—for example, investor protection, market integrity, or financial stability. When exercising these rights in the context of the MiCA Regulation, it is essential to consider the restrictions imposed by the relevant national legal framework.

Last updated on 26 Mar 2025