Croatia: cryptocurrencies are neither legal means of payment nor electronic money

Croatia supports common EU decisions concerning cryptocurrencies. It is stated in the official response of Central Bank of Croatia to the CopPay inquiry. world central banks. CopPay have made inquiries to world central banks with the aim to carry out a study and determine the most favorable countries for placing its payment platform.

“Please note that cryptocurrencies are not a legal means of payment in the Republic of Croatia. They are neither a means of payment pursuant to Article 21 of the Act on the Croatian National Bank (Official Gazette 75/08 and 54/13) nor a foreign currency, that is, a means of payment pursuant to Article 4 of the Foreign Exchange Act (Official Gazette 96/03, 140/05, 132/06, 150/08, 92/09, 133/09, 153/09, 145/10 and 76/13)”, — states the Central Bank of Croatia.

The National Bank also states that cryptocurrencies are also not electronic money as defined by the Electronic Money Act. According to the Act Electronic money is “… electronically, including magnetically, stored monetary value representing a claim on the issuer, which is issued upon receipt of funds for the purpose of making payment transactions in terms of the law governing payment transactions, and which is accepted by a natural or legal person other than the electronic money issuer.”

“According to the legal definition of electronic money, cryptocurrencies cannot be considered as electronic money as they do not represent a monetary claim on the issuer,” — states Central Bank of Croatia.

Croatia also appeals to the experience of other EU countries. Most of them have the same or similar position, according to the Central Bank.

“Most of other European Union member states are of the opinion that cryptocurrencies do not comply with legal criteria to be qualified as a legal means of payment, electronic money or a payment instrument, but that their use is not illegal, although it is neither regulated nor supervised by public authorities. EU member states differ in their attitudes towards the status of cryptocurrencies — some consider cryptocurrencies as a product and some regard them as a financial instrument,” — this is stated in Central Bank’s response to CopPay inquiry.

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