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Cryptocurrencies in Bulgaria: Facts and Figures

Ever considered entering the crypto world but always hesitated due to negative news and government opposition to crypto currencies? If you are moving to Plovdiv or anywhere in Bulgaria, you will quickly notice that things work differently here compared to western European countries and it is maybe the right time to educate yourself about blockchain and cryptos without all the negativity that exists in highly regulated western countries.

This article is for those who know a little bit about block chain, but are afraid to implement it due to various factors, including geographical obstacles, government regulations, and scarcity propaganda spread by big commercial banks. Disclaimer: This article does not constitute an investment recommendation. In this post, we are going to explain some factors related to crypto investment and trading in Plovdiv and Bulgaria. Assume that you are not a total newcomer to this industry and already possess some level of knowledge. 

Many reasons make Plovdiv (Bulgaria) the perfect place to start your cryptocurrency adventure. Below are some facts about cryptocurrency investment & trading in Bulgaria that you may find useful:

There is no pressure on cryptocurrency investment and trading in Bulgaria:

A Bulgarian court reportedly ruled in 2015 that activities associated with buying, selling, and paying for cryptocurrencies are not subject to licensing requirements. It is not common for government officials to stop the operations of large crypto exchange platforms in the country for nonsense reasons, as in western european countries. The banks in Bulgaria also don't dare tell you what to do with your own money as long as you do not engage in illegal practices. (In the past, some banks temporarily halted money transfers to/from cryptocurrency exchanges. These banks are known for their opposition to bitcoin, and examples include JP Morgan Chase, UBB, Commerzbank, and Fibank which works with JP Morgan). To address the regulatory gap, Bulgarian Financial Supervision Commission recently released a strategy to boost crypto businesses in the country.

Crypto income is subject to low tax rates:

As far as taxation is concerned, crypto currency income in Bulgaria are taxed in the same way as other financial assets. Therefore, any profits generated from Bitcoin transactions will be taxed at a flat rate of 10%, the lowest corporate tax rate in the EU. However, in countries like France and England, these percentages increase to 55% as your income/profit increases. 

You can buy and sell cryptocurrency from Bitcoin ATMs and change offices:

There is a Bitcoin ATM at the entrance to Mall Plovdiv. On this ATM, using the Bulgarian Lev, you can easily buy and sell several cryptocurrencies. Several languages are available on the machine. The same Bitcoin ATM machines can be found in shopping malls throughout Sofia. The change bureau which is located on Boluvard Vasil Aprilov in Plovdiv allows for the exchange of cryptocurrency. 

The Bulgarian Government may be the world's largest Bitcoin holder:

The government of Bulgaria may be sitting on one of the largest bitcoin holdings in the world. The Bulgarian law enforcement agencies seized 213,519 bitcoins in May 2017 following the crackdown on an organized criminal group. Interestingly, the Bulgarian Government has largely remained silent on their alleged assets. Historically, for the first time in ever, the value of bitcoin holdings of a nation state has surpassed the value of their gold reserves. 

The majority of cryptocurrency exchange platforms view Bulgaria as a whitelisted country:

Bitcoin use may be permitted in some countries and not in others. Cryptocurrencies have caused fear among governments and banks throughout the world. In spite of the fact that tax authorities, enforcement agencies, regulators and banks at home and abroad are still discussing how to deal with the phenomenon, some countries completely ban the use of cryptocurrencies. Bulgaria's membership in the European Union gives it a huge advantage when it comes to opening a crypto wallet on most exchange platforms. By joining multiple exchange platforms or having several digital crypto wallets, you can diversify your portfolio and reduce risk of losing your assets if a company goes down or gets hacked. Being in Bulgaria gives you access to multiple international exchanges and crypto wallets. 

Bulgaria has a huge Crypto community
You wouldn't expect much people on a crypto boat in a country with a population of 7 million, would you? Lots of people in Bulgaria are interested in cryptocurrencies and many are already involved. But how do we know that? When you look at the top 5 trending topics in Bulgaria on Twitter, you are likely to find #cryptocurrency among them. Additionally, #nft and #bitcoin sometimes race to the top. According to the statistics which are published by Google every year end, crypto related searches belong in the top 15 including searches of ''bitcoins'', ''nfts'', and 'cryptocurrency prices'' as well as specific coins. It is common to find tons of crypto fans from Bulgaria on Twitter daily sharing insights, opinions, fresh news and taking part in global cryptocurrency discussions. 

Advantage of the national currency:
Despite being part of the European Union, Bulgaria retains its own currency (Bulgarian Lev), unlike other member nations. Furthermore, Bitcoin prices are usually displayed in USD worldwide. As of the time of writing this article, 1 United State Dollar equals 1.73 BGN. In this way, even the smallest gains from cryptocurrency investments can make a nice profit when converted to Bulgarian Lev. Currently, when Bitcoin is priced at 50k in USD, it is worth 85k in Bulgarian Lev.

That's all there is to know about cryptocurrencies in Bulgaria. You are welcome to share any points that we may have missed in the comments section. Thank you for reading.


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