What You Will Gain from This Guide
The Guide to Using Cryptocurrencies in Business is a practical and straightforward document designed to help legal entities understand what cryptocurrencies are and how companies and organisations in Serbia can harness the benefi ts of this emerging fi nancial system.
Who Is This Guide For?
This guide is intended for companies and organisations looking to enhance their operations through the use of cryptocurrencies, bypass fi nancial system constraints, facilitate more effi cient payments and collections, open up new markets, preserve capital value, and position themselves as leaders and trendsetters in the digital economy rather than mere followers. The guide provides concrete examples of how legal entities can send and receive cryptocurrencies, invest in them, and navigate the associated legal, tax, and accounting frameworks with detailed explanations.
What to Expect After Reading This Guide
Managers, corporate legal professionals, lawyers, accountants, and consultants will gain insights into how cryptocurrencies can already enhance their businesses and those of their clients. Readers will also learn how companies in Serbia can lawfully integrate cryptocurrencies into their operations today.
What Are Cryptocurrencies?
Cryptocurrencies, or digital assets, are a digital record of value that:
• Exist solely in digital form;
• Can be used as a means of exchange;
• Serve as an investment vehicle and can represent a profi table investment opportunity.
A fundamental component of cryptocurrencies is blockchain technology, which can be described as a public ledger of all transactions ever conducted within a given network. Every transaction recorded in this public ledger is verifi ed by all participants in the system. Once entered, the information can never be deleted or altered.
A useful analogy for blockchain technology is a shared spreadsheet in Google Sheets, which multiple users can access and edit simultaneously. However, unlike Google Sheets, which is centrally stored on Google’s servers, blockchain technology distributes the document across the entire network. Each participant holds a copy of the same fi le, ensuring decentralisation and security.
In Serbia, cryptocurrencies are regulated by the Law on Digital Assets, adopted in 2020, meaning their use operates within a defi ned legal framework.
What Is Bitcoin?
Bitcoin is a digital, decentralised cryptocurrency that enables fast and transparent value transfers between parties without the involvement of intermediaries. Its total supply is limited to 21 million units and is created through a process called mining. Unlike fi at currencies, which governments can issue in unlimited quantities without expending resources—leading inevitably to inflation and economic decline—Bitcoin is virtually the only asset whose supply cannot be increased. This is precisely why Bitcoin’s value tends to rise, while the value of traditional currencies such as the US dollar, euro, and Serbian dinar declines.
One of Bitcoin’s key advantages, aside from low transaction fees, is its speed—Bitcoin transfers take only a few minutes, whereas traditional bank transfers may require hours or even days. This delay occurs because the conventional banking system relies on multiple fi nancial institutions and outdated technology from the 1970s (such as SWIFT). Additionally, Bitcoin cannot be seized or blocked, nor can transactions be restricted by external authorities, which is not the case with the traditional fi nancial system.
Bitcoin is decentralised because it is not controlled by a central bank or any other institution— it is governed solely by its users. This means that there is no central authority acting as an intermediary for transactions, nor can any government unilaterally ban Bitcoin. It is also important to highlight that no international institution or multilateral treaty regulates transactions within the Bitcoin network.
Consider the SWIFT system, which is directly owned by fi nancial institutions and allows for the exclusion of participants at will. In contrast, Bitcoin operates on a model of self-custody, meaning that holders have full control over their assets, making unilateral seizure impossible. Essentially, Bitcoin functions simultaneously as a bank, a payment system, and a currency—in other words, Bitcoin is JP Morgan, SWIFT, and the US dollar all in one!
What Is Tether and How Does It Work?
Tether is the fi rst and most widely used stablecoin, introduced in 2014. It operates by maintaining a 1:1 peg to the US dollar, meaning that for every Tether in circulation, there must be one US dollar held in reserve. The system functions as follows: a user deposits one dollar into the account of Tether’s issuer. In return, one Tether (USDT) is created and sent to the user’s digital wallet. The user can redeem their Tether for US dollars at any time, maintaining the 1:1 exchange ratio. As of today, Tether’s market capitalisation stands at $140 billion.
Tether and other stablecoins are primarily used by cryptocurrency traders due to their stable value. Additionally, businesses utilise Tether for faster and more effi cient cross-border transactions, avoiding the cumbersome documentation often required by banks. Likewise, individuals use Tether to circumvent high fees and long processing times associated with international money transfers, as well as to hedge against cryptocurrency volatility.
Receiving and Sending Cryptocurrencies for Goods and Services
It is important to note that in Serbia, the dinar (RSD) is the only legal tender, meaning that all financial obligations between individuals and businesses must be settled in dinars, except in explicitly prescribed cases where foreign currencies are permitted. This means that goods and services can only be formally invoiced and paid for in dinars or, in certain cases, in foreign currencies.
However, Serbian law allows for an exchange agreement, where two parties trade assets directly without involving money. For example, one property may be exchanged for another, or a car for another car. In such agreements, both parties assume the legal obligations of a seller under a standard purchase contract. Since cryptocurrencies are legally classified as a separate asset class, there are no legal barriers to exchanging goods for digital assets. This is where stablecoins such as Tether are most commonly used, due to their stable value.
For instance, a foreign supplier may accept Tether from a Serbian buyer as payment for delivered goods. The funds would appear in the supplier’s digital wallet within minutes. Similarly, a Serbian company could decide to receive stablecoins in exchange for goods or services provided.
Two Ways to Use Cryptocurrencies in Business
There are two primary methods for integrating cryptocurrencies into business transactions:
1. Exchange Agreement (Barter Contract) – One party delivers goods, while the other transfers a predetermined amount of cryptocurrency in return.
2. Substitute Performance Clause in a Sales Contract – The contract specifies that the buyer’s obligation will be considered fulfilled if payment is made in cryptocurrency.
Both options are available for domestic and international transactions. For instance, a Serbian company looking to purchase cryptocurrencies for cross-border transfers can do so through a regulated exchange in Serbia. Similarly, a Serbian company that receives cryptocurrencies as payment for goods or services can easily convert them into dinars via a regulated exchange, with the funds appearing in its bank account within hours.
It is important to note that cryptocurrency transactions for goods and services can only take place between legal entities (B2B) and between individuals (P2P), but not between companies and individuals (B2C).
Investing in Cryptocurrencies
While individuals have been investing in cryptocurrencies for years, there has been a noticeable increase in the number of companies choosing to allocate part of their liquid assets to cryptocurrencies— primarily Bitcoin. The key reasons include:
• Bitcoin is a scarce asset – Unlike fi at currencies, whose value depreciates over time, Bitcoin is capped at 21 million units, making it a strong hedge against inflation. In 16 years, Bitcoin’s value has surged from $0.003 to $109,000.
• No counterparty risk – Unlike stocks or bonds, which rely on issuers that may face bankruptcy, fraud, or mismanagement, Bitcoin has no issuer, eliminating such risks.
• Institutional adoption – In January 2024, Wall Street offi cially entered Bitcoin markets with the introduction of Bitcoin Exchange Traded Funds (ETFs)—a regulated fi nancial product backed by Bitcoin. In its fi rst year, Bitcoin ETFs saw an inflow exceeding $100 billion, making them the most successful ETFs in history.
• Bitcoin as a digital asset – Unlike physical assets such as real estate, Bitcoin requires no maintenance costs, cannot be destroyed, and is not affected by external conditions.
When comparing Bitcoin’s return on investment with other asset classes over the last fi ve years, Bitcoin has demonstrated the highest performance by a signifi cant margin.
* The Magnifi cent 7 refers to the seven most successful and largest companies in the US: Amazon, Apple, Google, Meta, Microsoft, Nvidia, and Tesla.
* The S&P 500 is an index of the 500 most successful American companies and is considered the best indicator of the US economy—and by extension, the global economy. Over the past 100 years, it has historically grown at an average annual rate of 10%.
How to Buy Cryptocurrencies?
Companies, as well as other legal entities and entrepreneurs in Serbia, can acquire cryptocurrencies in several ways:
• The fi rst and simplest way is to purchase cryptocurrencies through a regulated crypto exchange, such as Crypto12.
• The second way is to acquire cryptocurrencies in exchange for goods and/or services delivered by another legal entity, as outlined in the section on Receiving and Sending Cryptocurrencies for Goods and Services.
• The third option is for the founders of a company to lend their cryptocurrencies to the company. These lent cryptocurrencies can then be exchanged for dinars via a regulated exchange and used for regular business operations.
How to Store Cryptocurrencies?
Since cryptocurrencies exist only in digital form, and not in physical form, it is clear that they cannot be kept in your favourite leather wallet. Instead, they must be stored in a digital wallet, which is an app or device designed for storing and sending cryptocurrencies.
The public key represents the address on the blockchain where the cryptocurrencies are stored, and as such, it is visible to everyone. On the other hand, the private key is not visible to anyone and acts like a PIN for a debit card, providing access to the cryptocurrencies for transactions. In addition to the private key, when creating a wallet, a random set of 12 or 24 words is often provided, which forms the so-called “seed phrase” and serves as a backup option. A wallet can be accessed via various devices, such as a mobile phone, laptop, PC, tablet, etc.
Securely storing cryptocurrencies is one of the greatest risks that, unfortunately, is often overlooked. Unlike a bank or any other digital platform where you might lose your PIN or password, in the case of losing the private key and seed phrase, access to the cryptocurrencies is permanently lost. Therefore, it is advised to store private keys and the seed phrase in a secure place and always make a backup copy.
Accounting for Cryptocurrencies
A major obstacle preventing many legal entities from using cryptocurrencies, despite understanding the benefi ts they bring, is insuffi cient understanding of how to account for them. Below, we explain how cryptocurrency accounting works.
Let’s assume that a legal entity keeping books wishes to buy cryptocurrencies through a regulated exchange such as Crypto12. In this case, accounting works as follows: when the money is transferred to the Crypto12 account, the legal entity receives an invoice (fi nal invoice) from Crypto12, which specifi es the description and quantity of the purchased cryptocurrencies. This invoice forms the basis for accounting for the cryptocurrencies acquired by the legal entity, which records it as a supplier invoice on the receivables side (435), while the value of the cryptocurrencies is recorded under class 0 – unpaid registered capital and fi xed assets.
When a legal entity keeping books wishes to sell cryptocurrencies through a regulated exchange such as Crypto12, the accounting works as follows: when the cryptocurrencies are transferred to the exchange’s digital wallet and the seller receives the amount in dinars for selling their cryptocurrencies to their current account, they issue an invoice (fi nal invoice) to the exchange, which specifi es the description and quantity of the cryptocurrencies sold. This invoice is recorded as a receivable on the credit side (204), while the received funds are treated as revenue from the sale of cryptocurrencies.
Taxation of Cryptocurrencies
A signifi cant issue when deciding whether to use cryptocurrencies in business is their tax treatment. It should be noted that the Digital Assets Law was accompanied by amendments to relevant tax regulations. Consequently, the taxation of digital assets is included in existing tax rules, making it easier for accountants and legal entities to meet their tax obligations.
The following three types of transactions involving digital assets will be considered:
1. Purchase of digital assets (a legal entity uses offi cial fi at currency to purchase digital assets)
2. Exchange of digital assets for:
• Another type of digital asset
• Goods or services
3. Sale of digital assets (a legal entity receives offi – cial fi at currency for the sale of digital assets)
Note: The transfer of the same cryptocurrency from one digital wallet of the taxpayer to another (i.e. where both digital wallets belong to the same taxpayer) does not constitute a taxable event (it should be treated in the same way as transferring money from one bank account to another within the same entity).
| VAT The transfer of cryptocurrencies and the exchange of cryptocurrencies for fiat currency, in accordance with the Digital Assets Law, are exempt from VAT, but without the right to deduct input tax | CUSTOMS Digital assets are not subject to customs regulations | INCOME TAX If a legal entity transfers digital assets to employees, for example, as a bonus, such a transfer is subject to income tax and social security contributions as regular salary |
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Corporate Income Tax
The purchase of digital assets does not have direct tax implications for the legal entity making the purchase. On the other hand, each transfer, exchange, or sale of digital assets leads to the determination of capital gains or losses for the transferor (except for entities authorised to provide services related to digital assets – regulated crypto exchanges). Capital gains are determined as the difference between:
1. The selling price of the digital asset – the selling price is considered to be the agreed price (adjustments may be made if the agreed price is lower than the market price). In the case of an exchange, the selling price is considered to be the market value of the rights received in return, adjusted for any received or paid cash difference. For example, if a cryptocurrency is exchanged for services from a third party, the selling price would be the market value of the services received on the transaction date. Similarly, if a cryptocurrency such as Bitcoin is exchanged for another cryptocurrency, the selling price would be the market value of the other cryptocurrency received in exchange for Bitcoin.
2. The acquisition cost of the digital asset – the basic rule is that the acquisition cost is the price paid by the taxpayer, which is documented as the actual amount paid. In the case of purchasing digital assets, the acquisition cost is the price at which the legal entity purchased the digital asset. In the case of an exchange (where the legal entity exchanged goods or services for digital assets, or one type of digital asset for another), the acquisition cost is the value given by the legal entity to obtain the digital asset (i.e., the value of the services provided to acquire the digital asset).
Capital gains are determined for each sale/exchange separately, but they are included in the taxable income of the legal entity on an annual basis, within the regular corporate income tax return, and are subject to corporate income tax at a rate of 15%.
Determined capital gains can be offset against capital losses, both those determined during the tax year and within a 5-year period from the occurrence of capital losses (in other words, if an entity incurs a capital loss in one tax year, it has the right to offset it against capital gains incurred in the following 5 years). It should be noted that capital gains/losses cannot be offset against regular/ operating losses.
An exemption is also provided: Capital gains realised from the sale of digital assets are excluded from the taxable base if the funds from the sale are invested in the same tax period into the equity capital of a resident taxpayer or an investment fund established in accordance with the regulations governing investment funds, and whose business or investment activities centre is located in Serbia. However, capital losses arising from the sale of digital assets cannot be offset against capital gains if the sale proceeds are invested in this manner.
What’S Next?
If, after reading this, you have realised how cryptocurrencies can enhance your business, congratulations! You are among the pioneers in adopting new technologies and visionaries who can foresee trends and wish to actively participate in change. If not, you may need to educate yourself further and gain a better understanding of cryptocurrencies. In that case, we believe it will become clear to you why the world’s most powerful nations and companies have started actively investing in cryptocurrencies.
Bogdan Vujović
Bogdan Vujović is a lawyer and economist specialising in providing legal advice to companies regarding the use of digital assets in business. He is the author of two books in the fields of digital assets, decentralised finance, and legal regulation. He is actively involved in education within the digital asset sector. A regular speaker and moderator at domestic and international conferences, he is also a guest on podcasts and TV shows.
Dejan Mraković
Dejan Mraković is a lawyer and passionate tax advisor who was, until 2021, the tax partner at Deloitte Central Europe. He is an experienced international tax expert with 15 years of experience in the tax advisory market. Dejan has participated in numerous projects aimed at aligning Serbian legislation with EU standards or modernising the Serbian Tax Administration by comparing it with developed tax jurisdictions.
