Crypto Overview in San Marino

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

San Marino has developed one of the most comprehensive cryptocurrency regulatory frameworks among European microstates. Cryptocurrencies are fully legal, and the government has actively positioned the country as a blockchain-friendly jurisdiction since 2019. The current framework is anchored in Delegated Decree No. 138 of August 29, 2024, which entered into force on October 2, 2024, and consolidates several years of evolving legislation beginning with Delegated Decree No. 86 of May 23, 2019, which first established blockchain technology rules for businesses and the official register of blockchain entities.

Decree 138/2024 establishes a two-category classification system for all tokens based on distributed ledger technology:

• Type A tokens (crypto-assets): Defined as financial activity in tokenized form, including asset-referenced crypto-assets (comparable to stablecoins under the EU’s MiCA regulation), electronic money tokens, and general cryptocurrencies such as Bitcoin and Ether. These fall under the supervision of the Banca Centrale della Repubblica di San Marino (BCSM).
• Type B tokens: Tokenized informational documents that are not financial instruments, including utility tokens and NFTs. These fall under the jurisdiction of San Marino Innovation S.p.A. rather than the financial regulator.

This dual-track structure allows San Marino to regulate financial-grade crypto-assets with strict oversight while providing a lighter-touch framework for non-financial blockchain applications.

Tax Treatment

San Marino introduced a dedicated crypto-asset tax regime through Delegated Decree No. 150 of October 25, 2023, effective from the 2024 tax year.

For individuals, gains from selling or exchanging crypto-assets are classified as “Other income” and subject to a flat 8% substitutive tax rate. The first 2,000 euros in annual gains is exempt. Losses can offset gains within the same tax year but cannot be carried forward. The calculation method uses LIFO (last-in, first-out). Exchanges between identical crypto-assets are not treated as taxable events. When gains arise through an authorized San Marino provider, the 8% tax is withheld at source, though taxpayers may elect instead to include gains in their total taxable income at the standard progressive rate.

For corporate entities, crypto-assets are classified as financial instruments under standard corporate accounting rules. The standard corporate tax rate is 17%. However, companies certified as high-technology enterprises by San Marino Innovation benefit from a staged incentive regime: 0% tax in years 1-3, 4% in years 4-7, and 8% in years 8-12. Investor deductions of up to 2 million euros are also available at tiered rates depending on the enterprise stage.

Regulatory Oversight

Three bodies share regulatory responsibility:

• BCSM supervises all Type A token activities, issues implementing regulations (BCSM Regulation No. 2024-03 on Crypto-Assets), and must authorize any firm seeking to issue asset-referenced crypto-assets or provide crypto-asset services. Existing licensed financial firms may add crypto services with prior BCSM approval.
• San Marino Innovation S.p.A., a 100% state-owned company, acts as regulator and registrar for Type B token operators. It maintains the public DLT Operators Registry, which all businesses using blockchain technology must join regardless of token type. It also operates incubator licensing and enterprise certification programs.
• Agenzia di Informazione Finanziaria (AIF) functions as San Marino’s Financial Intelligence Unit, assessing money laundering and terrorist financing risks for all regulated entities, including crypto-asset service providers.

Business Environment

Banking Relationships

San Marino’s 2024 DLT framework explicitly integrates traditional banking into the crypto-asset ecosystem. San Marino banks may apply for BCSM authorization to issue asset-referenced crypto-assets and to provide crypto-asset services alongside conventional banking operations. Because the BCSM acts as both the banking supervisor and the crypto-asset regulator, there is structural alignment between the two areas that reduces regulatory friction. San Marino uses the Euro as its currency under a bilateral monetary agreement with Italy, giving its banks established correspondent relationships within the Italian and broader European banking system.

Innovation Support

San Marino has taken an unusually proactive role in supporting blockchain as a policy instrument. San Marino Innovation S.p.A. operates simultaneously as regulator, registrar, incubator, and strategic partner for the blockchain ecosystem. Its programs include enterprise certification for high-technology companies, incubator licensing for third parties wishing to establish blockchain incubators within San Marino, and partner certification for ecosystem participants.

The government’s engagement extends to direct partnerships. San Marino signed a memorandum of understanding with VeChain and adopted the VeChainThor blockchain for a national sustainability incentive program. Citizens earn San Marino Innovation Tokens (SMIT) for sustainable behaviors, redeemable for local services. In 2025, VeChain served as San Marino’s official partner at Expo 2025 Osaka, presenting the VeBetter ecosystem at the San Marino Pavilion. As of 2024, more than 20 blockchain-oriented companies had registered through San Marino Innovation.

Crypto License in San Marino

San Marino operates a dual licensing regime under Delegated Decree No. 138 of 2024, splitting oversight between the BCSM (for financial-grade Type A tokens) and San Marino Innovation S.p.A. (for non-financial Type B tokens). All businesses using distributed ledger technology are required to register in the DLT Operators Registry before conducting any token-related activity.

Licensing Requirements

For financial crypto-asset firms operating with Type A tokens, BCSM prior authorization is required under two reserved activities introduced in Annex 1 of the Financial Services Law (LISF): activity J-bis (issuance of asset-referenced crypto-assets) and activity L-bis (provision of crypto-asset services). Applicants must typically incorporate as a joint-stock company under San Marino law, or demonstrate establishment in an EU country or in a country not classified as high-risk for AML purposes.

Governance, fit-and-proper, and capital requirements apply. Directors, executives, and control function holders must submit self-declarations covering integrity, fairness, professionalism, and independence, as specified in the BCSM’s published standard application forms. Token issuers must submit a white paper covering six areas: operator information, financial results, project details, offering terms, token rights and obligations, the underlying technology, and risk assessments. Segregation of client assets from operator assets is mandatory, and written client consent is required before any use of client funds.

For Type B tokens, San Marino Innovation S.p.A. is the competent authority. Businesses register in the DLT Operators Registry and comply with San Marino Innovation’s own certification and governance rules. All entities, regardless of token type, must also obtain authorization from the Ufficio Attività Economiche under the 2024 economic activities framework.

Authorized Activities

BCSM-authorized crypto-asset firms may carry out issuance and offering of Type A tokens, operation of trading platforms, and provision of the full range of crypto-asset services enumerated in Decree 138/2024. Existing banks and licensed financial companies may expand into crypto-asset services by obtaining specific BCSM approval, provided they already hold at least one reserved activity authorization under the LISF. San Marino’s framework also covers NFTs under the Type B regime, extending the regulatory perimeter beyond EU MiCA which does not regulate NFTs by default.

Application Process and Timeline

Applications for BCSM authorization are submitted directly to the Central Bank with the required self-declaration forms and organizational documentation. The BCSM’s implementing regulation (Regulation No. 2024-03) sets out the detailed procedural requirements. Company formation in San Marino typically takes four to five weeks, with bank account opening requiring approximately two additional weeks. For Type B operators, San Marino Innovation manages the DLT Operators Registry enrollment process. Violations of Decree 138/2024 are subject to administrative fines ranging from 1,000 to 30,000 euros; serious violations can reach up to 10% of total annual revenues or double the benefit derived from the violation.

Market Characteristics

Adoption Patterns

San Marino’s small domestic population (approximately 35,000 residents) means the cryptocurrency market is primarily oriented toward attracting foreign businesses and investment rather than serving a large retail base. The government-operated SMIT token represents one of the few examples globally of a state-issued blockchain incentive token in active use for citizen engagement. Individual investor activity is facilitated by the clear 8% substitutive tax rate with a meaningful annual exemption, making tax compliance straightforward compared to jurisdictions with complex capital gains regimes.

Industry Focus

The jurisdiction has attracted blockchain businesses across several categories: crypto-asset service providers seeking a regulated but business-friendly European base, high-technology enterprises taking advantage of the staged corporate tax incentive regime, and mining operations. The combination of a modern regulatory framework, relatively low tax burden for certified enterprises, and geographic and currency integration with Italy makes San Marino a distinctive option for blockchain companies considering a European domicile outside the EU.

Regulatory Evolution

San Marino’s crypto framework evolved from the exploratory 2019 decree through a series of updates culminating in the October 2024 regime. A key feature of the current framework is its deliberate alignment with the EU’s Markets in Crypto-Assets Regulation (MiCA), using the same token classification categories and similar white paper and supervisory requirements. This alignment is a strategic preparation for the pending EU Association Agreement, negotiations for which concluded in December 2023. The European Commission submitted formal proposals for Council signing decisions in April 2024, and in December 2025 the Council determined the agreement carries mixed competencies, meaning ratification by all EU member state parliaments is required. San Marino’s Grand and General Council passed decisions in March and July 2025 committing the government to proceed. The agreement, once in force, would grant San Marino access to the EU Internal Market comparable to EEA membership under conditions of progressive regulatory audit.

On anti-money laundering compliance, San Marino is assessed by MONEYVAL, the Council of Europe’s anti-money laundering evaluation body. The original mutual evaluation was adopted in April 2021. MONEYVAL’s first enhanced follow-up report, published in May 2024, found that San Marino had addressed sanctions-related deficiencies: Recommendation 35 was upgraded from Partially Compliant to Largely Compliant following 2023 legislative amendments. With 37 of 40 FATF recommendations now rated Largely Compliant or Compliant, San Marino is not on the FATF grey list or blacklist. Decree 138/2024 explicitly classifies crypto-asset service providers as designated entities under San Marino’s AML law, extending the full suite of customer due diligence, transaction monitoring, record-keeping, and suspicious transaction reporting obligations to the sector.