In the rapidly evolving economic landscape, governments around the world are increasingly leaning on legislative instruments to guide growth, safeguard financial systems, and foster innovation. One such legislative tool is the “Economy Decree” — a bundle of regulatory updates designed to stimulate investment, ensure financial compliance, and support technological progress. Recent updates to the Economy Decree reflect a nuanced approach to three critical areas: cryptocurrency regulation, startup ecosystem support, and anti-money laundering (AML) measures.
This article offers an in-depth look at the latest provisions and policy changes within the Economy Decree, their implications, and the balancing act between innovation and regulation.
Cryptocurrency: Tightening the Framework Without Killing Innovation
Regulatory Clarity
With the explosive growth of digital assets over the past decade, regulators have moved from tentative observation to more assertive regulation. The updated Economy Decree addresses long-standing ambiguities by providing clear definitions of digital assets, distinguishing between utility tokens, security tokens, and stablecoins, and outlining their respective regulatory treatment.
The new decree stipulates that:
Crypto service providers, such as exchanges and wallet operators, must be registered with a national financial authority.
Providers must conduct KYC (Know Your Customer) and AML checks on all clients, regardless of transaction size.
A licensing regime is introduced for companies offering custodial services or crypto trading to ensure operational transparency and investor protection.
Taxation of Digital Assets
Another major update involves tax rules related to digital assets:
Capital gains above a defined threshold (e.g., €2,000 annually) from crypto trading will now be taxable income.
Losses incurred on digital assets can be offset against capital gains, creating a more investor-friendly framework.
Crypto-to-crypto transactions are excluded from taxation until converted to fiat currency.
Impact on the Crypto Industry
While some in the industry worry that these measures may stifle innovation, others argue that regulation is necessary for long-term stability. The decree also includes sandbox provisions for blockchain and fintech startups to test new products under regulatory supervision, a move welcomed by crypto entrepreneurs.
Startups and Innovation: Fueling the Next Generation of Growth
The Economy Decree introduces several initiatives designed to make the jurisdiction more attractive for startups and venture capital. These include tax incentives, simplified legal structures, and increased access to funding.
Key Measures
Startup Visa Expansion: The decree expands eligibility criteria for international entrepreneurs seeking to establish innovative startups, including streamlined residency and work permits.
Tax Incentives:
Investors in qualifying startups can claim income tax deductions of up to 30%.
Startups benefit from reduced corporate tax rates for the first five years of operation.
R&D spending receives super-deductions (up to 200% of actual expenses).
Innovation Hubs and Grants:
Establishment of regional innovation hubs providing mentorship, funding access, and technical support.
Allocation of state-backed grants for high-impact research, AI development, and green technology projects.
Simplified Corporate Structures:
Introduction of a new, fast-track incorporation process for tech startups.
Flexible equity instruments such as convertible notes and SAFE agreements now have a formal legal basis.
International Cooperation
In a bid to become a European leader in innovation, the government has entered partnerships with leading tech clusters in Germany, the Netherlands, and the Nordic region. These collaborations include cross-border accelerator programs and dual listing options for startup IPOs.
Anti-Money Laundering (AML): A Tougher Stance on Financial Crime
With the rise in financial fraud, money laundering, and terrorism financing, the Economy Decree has taken a zero-tolerance approach to AML, aligning domestic rules with evolving global standards, particularly those set by the Financial Action Task Force (FATF).
Enhanced Due Diligence (EDD)
Financial institutions and designated non-financial businesses and professions (DNFBPs) are now required to:
Perform enhanced due diligence on high-risk clients, including politically exposed persons (PEPs).
Report suspicious transactions above a lowered threshold of €5,000 (previously €15,000).
Implement real-time monitoring systems using AI and machine learning to detect anomalies.
Centralized Beneficial Ownership Registry
To improve transparency, the decree mandates:
All legal entities must report their beneficial owners to a centralized national registry.
Access to the registry will be granted to law enforcement, tax authorities, and financial intelligence units (FIUs).
Heavy penalties for non-compliance, including hefty fines and suspension of corporate licenses.
Crypto and AML
Special emphasis is placed on the role of crypto assets in illicit finance. The decree aligns with the EU’s MiCA (Markets in Crypto-Assets) regulation and the Transfer of Funds Regulation (TFR) to:
Require travel rule compliance, meaning sender and receiver information must accompany crypto transfers.
Impose record-keeping obligations on crypto service providers for a minimum of 5 years.
Encourage public-private cooperation to improve risk detection, including information sharing between law enforcement and exchanges.
Conclusion: Striking the Right Balance
The latest Economy Decree illustrates a critical shift in government strategy — from cautious regulation to active facilitation and risk management. While the measures add layers of compliance, they also build the foundations for a more stable, innovative, and globally integrated economy.
Cryptocurrency regulation offers legal clarity; startup incentives provide fertile ground for innovation; and rigorous AML frameworks protect the integrity of financial systems. As these policies take root, their success will depend on agile implementation, transparent oversight, and continued collaboration between the public and private sectors.
For entrepreneurs, investors, and financial institutions, understanding and adapting to these changes is no longer optional — it is essential for long-term growth and compliance in the digital age.
