Digital property law adopted

in Law

The National Assembly of the Republic of Serbia adopted the Law on Digital Property (“Official Gazette of the RS”, No. 153/2020) (hereinafter: the “Law”).

Digital assets, ie virtual assets, means a digital record of value that can be digitally bought, sold, exchanged or transferred and that can be used as a medium of exchange or for investment purposes, where digital assets do not include digital currency records that are legal tender and other financial assets that are regulated by other laws, except when otherwise regulated by law.

Virtual assets have two forms: (1) Virtual currency is a type of digital asset that is not issued by the central bank and whose value is not guaranteed by the central bank or other public authorities. Thus, virtual currency does not have the legal status of state money and is not necessarily tied to legal tender. However, virtual currency is accepted by natural and legal persons in practice as a means of exchange, because it forms its price on the basis of supply and demand, and it can be disposed of electronically and can be stored electronically; (2) Digital token (crypto token), is defined as any intangible property right that in digital form represents one or more other property rights, which may include the right of the user of the digital token to be provided with certain services.

The law also determines other key terms for its adequate application and understanding of the entire matter. Also, it regulates the issue of digital property, ie prescribes who and under what conditions can issue it.

The law entered into force on December 29, 2020, but it will be applied after the expiration of six months from the day of its entry into force, ie from June 29, 2021. Since this is a new matter that was not previously the subject of regulation, it is necessary to get acquainted with the legal provisions, but also the adoption of adequate bylaws.