Via henleyglobal.com
Montenegro aims to become Europe’s next crypto hub amid regulatory challenges
The tiny Balkan nation has the ambition and the tax rates, but a shaky regulatory foundation keeps scaring off the operators it wants most.
Montenegro has been telling anyone who will listen that it wants to be Europe’s crypto capital. The pitch is compelling on paper: corporate tax rates between 9% and 15%, no VAT on crypto transactions, EU candidate status, and a Mediterranean coastline that makes Zoom backgrounds irrelevant.
The country’s crypto courtship dates back to December 2020, when it launched a now-defunct Blockchain Directorate explicitly designed to cultivate a “crypto paradise” reputation.
The regulatory puzzle, half assembled
In February 2025, Montenegro took its most concrete step yet by amending its anti-money laundering law to create a registration framework for crypto-asset service providers, or CASPs. The system, overseen by the Capital Market Authority, covers eight different categories of crypto services, including exchanges and trading platforms.
Prime Minister Milojko Spajić announced in September 2025 that draft virtual asset legislation was under public consultation. The target is adoption sometime in 2026, with the goal of aligning Montenegro’s rules with the EU’s Markets in Crypto-Assets regulation, better known as MiCA.
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Political instability as a dealbreaker
Experts have flagged that the current AML-only framework may actually deter larger operators. Companies with serious compliance departments want more than just anti-money laundering rules. They want clear guidelines on custody, market conduct, disclosure requirements, and dispute resolution.
In 2022, the country granted citizenship to Ethereum co-founder Vitalik Buterin as part of its blockchain promotion efforts.
Competition from neighbors who did the homework
A 9% to 15% corporate tax rate combined with zero VAT on crypto transactions is genuinely competitive, particularly compared to major EU economies where corporate rates run considerably higher.