The Parliament of Montenegro has adopted amendments to its Anti Money Laundering (“AML”) law on 28 February 2025, aiming to align with recommendations from the DG FISMA and the OECD.
A key element of the changes is the introduction of Montenegro’s first-ever regulatory framework for crypto assets, crypto asset transactions, and related services. This initiative is aligned with the recommendations of MONEYVAL, particularly in the context of FATF Recommendation no. 15. Importantly, rather than adopting a standalone law whose draft has been under consideration since late 2021, Montenegro opted to integrate these regulations within the AML law.
Historically, crypto assets have been a contentious topic in Montenegro. An overly rigorous and conservative approach of public authorities has resulted in numerous dilemmas, obstacles, and inconveniences for market participants. The amendments aim to eliminate this grey zone and establish a clear legal framework, thereby fostering a more predictable and innovative market environment.
Under the amendments, crypto assets are defined as digital representations of value or rights that can be transferred and stored electronically using distributed ledger technology (DLT) or similar systems, including tokens representing electronic money.
In addition to this definition, the reforms detail a range of services associated with crypto assets, including:
- Custody and management of crypto assets on behalf of clients;
- Operation and management of crypto asset trading platforms;
- Exchange of crypto assets for fiat currency;
- Exchange of crypto assets for other crypto assets;
- Execution of crypto asset orders on behalf of clients.
To encourage market participation, the amendments allow a broad spectrum of entities to provide these services, including domestic and foreign individuals and legal entities alike. The provision of crypto assets services does not require any permit or licensing, there is only a registration obligation, which is primarily a formal procedure.
The Capital Market Commission will manage an online register of all entities offering crypto-related services. This register will be publicly accessible, ensuring transparency and facilitating informed decision-making among stakeholders. The establishment of the register is set for completion within nine months of the amendments’ entry into force.
These reforms represent a significant step forward in aligning Montenegro’s regulatory framework with international standards and emerging industry trends. We are optimistic that this marks the beginning of a broader transformation in the legal landscape, paving the way for further enhancements in line with comparative legal practices and evolving crypto market dynamics.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
