Summary: The safest and easiest way to buy Bitcoin and cryptocurrencies in Bulgaria is through a regulated and licensed digital asset broker. With this method, customers can deposit Euros (EUR) or Bulgarian Lev (BGN) from a Bulgarian bank account via bank transfer, debit card or credit card to buy and trade crypto assets.
For investors looking to get started quickly, we recommend the Uphold EU platform. Their exchange is licensed throughout Europe by the European Securities and Markets Authority (ESMA) to provide secure brokerage services for crypto, stocks, ETFs, commodities and other assets. They also provide an audited proof-of-reserves highlighting customer funds are always held 1:1.
Best Crypto Exchange in Bulgaria
- Trade 210+ Cryptos with fast Euro (EUR) deposits from any Bulgarian Bank.
- Regulated in Bulgaria & Europe and has audited Proof-of-Reserves for customer funds.
- Offers multiple asset classes including Crypto (and Crypto Staking), Stocks, ETFs, Metals, Currencies and more.
How to Buy Bitcoin and Crypto in Bulgaria
As mentioned above, the best method to invest in crypto assets as a resident of Bulgaria is through a regulated trading platform. In this guide, we will be focusing on Uphold's platform, with an overview of the steps required to get started. We will also outline some of our favourite alternative exchanges for investors looking to do further due diligence.
Here's how you buy Bitcoin, Ethereum and 200 other coins using the Uphold exchange:
- Sign Up: Create an account on Uphold and complete your verification (personal or company).
- Connect Account: Select the currency you want deposit on the Uphold Platform (EUR + 30 more).
- Deposit Funds: Connect your Bulgarian or European Bank account to quickly deposit your selected fiat currency.
- Buy Crypto: The final step is to find the cryptocurrency you want to buy and execute your trade.
What are the fees to buy Crypto in Bulgaria?
The main fees investors in Bulgaria need to consider are the fiat deposit fees to get funds onto the platform and the trading fees. The trading fees are the cost incurred when buying or selling crypto assets.
At Uphold, there is 0% commission on deposits via bank transfer and higher fee of 2.49% for debit/credit card deposits. The fee to trade on Uphold is variable and is charged in the spread of the buy and sell price. The average spread on Uphold for crypto assets ranges at around 0.5%, which is significantly cheaper than competitors like Coinbase and Kraken who charge over 2% per trade.
Best Alternative Crypto Brokers for Bulgarian Investors
The list below is the top 5 crypto exchanges that are alternatives to our top pick Uphold for investors in Bulgaria looking to do further due diligence.
- Binance - Binance is the world's largest exchange and supports over 300 crypto assets and a wide variety of features including staking, futures trading, options trading, NFTs and more.
- Kraken - Kraken is a San Francisco based cryptocurrency exchange that has been around since 2011 and is one of the oldest exchanges in the industry.
- Coinbase - Coinbase is a US-based exchange that supports over 150 cryptocurrencies, making it one of the most popular for retail investors.
- Bitpanda - Bitpanda is a European based exchange that supports over 90 crypto assets and allows users to buy, sell and store their digital assets securely.
- CEX - CEX is a UK based exchange that supports over 20 crypto assets and allows users to buy, sell and store their digital assets securely.
How is Crypto Taxed in Bulgaria?
Cryptocurrency transactions in Bulgaria are subject to taxation, just like any other type of asset. The Bulgarian government has introduced a new set of tax measures for cryptocurrency trading and investments with the aim of preventing money laundering activities. Under these rules, all individuals and legal entities that conduct crypto-related activities must declare their profits or losses in their annual tax returns. Transactions with cryptocurrencies are treated as exchange transactions, and the income generated is considered capital gains or losses.
In addition to the regular income tax rate of 10%, a 5% capital gains tax may be applied on profits from cryptocurrency trading. Also, individuals and businesses must pay a 20% value-added tax (VAT) on all crypto-related services. The Bulgarian government has also made it compulsory for cryptocurrency exchanges to register with the Financial Supervision Commission (FSC). This regulation is meant to ensure that cryptocurrency traders comply with existing tax regulations and are subjected to regular audits.
Who regulates cryptocurrencies in Bulgaria?
Cryptocurrencies are regulated in Bulgaria by the Bulgarian Financial Supervision Commission (FSC). The FSC is responsible for monitoring and regulating financial services throughout the country. It ensures that regulations related to cryptocurrencies are properly implemented, with companies providing services such as exchange, storage and other activities supervised, licensed and monitored.
Companies must also comply with anti-money laundering and terrorist financing regulations. The FSC also works with other government agencies to monitor the development, use and trading of cryptocurrencies in Bulgaria. As of 2022, Bulgaria is one of the few countries in Europe to have established regulations and supervision specifically for cryptocurrencies.
In summary, Bulgaria is one of the few countries in Europe that have established regulations and supervision specifically for cryptocurrencies. Uphold is a good option for Bulgarian investors who are looking to trade in crypto assets due to its low cost fees and wide range of digital asset offerings. Other alternatives such as Binance, Kraken, Coinbase and Bitpanda also offer competitive fees and features.
It is important to keep in mind the applicable taxes when trading cryptocurrencies in Bulgaria, as well as regulations enforced by the FSC. Doing so will help ensure that all your cryptocurrency transactions remain compliant with Bulgarian laws. By doing thorough research and due diligence, investors can be sure that they are making the most of their investment opportunities with cryptocurrencies.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.