Open a Cryptocurrency Company in Sweden

Investors who want to open a cryptocurrency company in Sweden have access to easy company formation and benefit from an open approach to blockchain technology. While there is no particular crypto license in Sweden in place at the moment, certain types of services are subject to certain requirements. Investors who wish to start a company in Sweden can reach out to our team for personalized incorporation assistance if they want to open a crypto business.

Cryptocurrency regulations in Sweden

While there is no specialized license, such as a crypto license in Sweden, these types of services are subject to anti-money laundering rules and specific registration requirements.

The following statements and general regulations are relevant for investors who want to open a cryptocurrency company in Sweden:

• the Financial Supervisory Authority (FSA) and the Swedish central bank (the Riksbank) have stated that, while Bitcoin is legal, it is not legal tender;
• the e-krona is a project by the Riksbank that has not yet been launched. It would be a digital complement to cash, available to everybody;
• from a taxation standpoint, cryptocurrencies are an asset, not currency or cash;
• registration requirements are in place for certain service providers. This could be seen as an equivalent of a crypto license in Sweden, as exchanges are registered and must observe the Swedish Currency Exchange Act;
• crypto mining is not regulated under Swedish law;
• capital gains are imposed on cryptocurrencies, as detailed below by our team.

Companies that offer crypto exchange services and are subject to a special registration that can be seen as a crypto license in Sweden, are required to observe the anti-money laundering regulations and the know-your-customer principles.

Our team can help you set up a company in Sweden, whether it is a cryptocurrency company or a business performing another commercial activity. With our help, you will understand the requirements for the chosen business form, the registration steps, as well as the post-incorporation procedures that are related to taxation, hiring employees and meeting the reporting requirements.

Virtual asset service providers (VASP) in Sweden

A virtual asset service provider (VASP) can offer a wide range of solutions, in line with the latest global trends in virtual assets. There is no specific VASP license in Sweden and companies that will engage in the provision of these types of services are not limited to opening a cryptocurrency company or exchange.

Virtual asset service provider is an umbrella term that can also refer to mining pools, decentralized exchanges (based on the use of blockchain technology), crypto wallet providers, or those that focus on virtual asset investment vehicles.

A virtual asset service provider in Sweden is registered with the Financial Supervisory Authority (Finansinspektionen). While there is no crypto license in Sweden license per se, companies that activate as a VASP register with the authority and are issued a permit for functioning.

Presently, there are approximately ten VASPs registered in Sweden. These companies implement special measures that ensure their compliance with the anti-money laundering laws and anti-terrorist financing provisions. If you are interested in company formation in Sweden and intend to register as a VASP you will also need to observe these laws.

Special laws for VASPs in Sweden

To receive the equivalent of a crypto license in Sweden, investors will need to be mindful of the following money laundering regulations that apply to all companies that operate in the financial industry.

Our team specializing in company registration in Sweden lists some of the actions that companies need to make sure they comply with:

• Engage in a thorough risk assessment process;
• Implement procedures for customer reporting and processing of personal data;
• Provide adequate training to the company’s employees (from time to time or as needed) to ensure that they fully understand the anti-money laundering procedures;
• Have adequate knowledge about their customers, and how they use the company’s services, in order to prevent offering their solutions to individuals who are involved in or plan on being involved in money laundering or terrorist financing;
• Use a proper risk classification for individual customers (in addition to the company’s general risk assessment);
• Comply with the monitoring activities required (two-part follow-up, record keeping, etc.);
• Report any suspected money laundering or terrorist financing to the Financial Intelligence Unit.

If you want to understand these compliance regulations in more detail before you open a cryptocurrency company in Sweden, feel free to reach out to our team.

The incorporation process for a crypto company in Sweden

Investors who open a cryptocurrency company in Sweden commonly do so in the form of a limited company.

Our team lists the main characteristics of the two types of this legal entity below:

1. Private limited company: incorporated by one or two investors with a minimum share capital of SEK 25,000. It cannot offer its shares to the public and it is run by at least one director;
2. Public limited company: can sell its shares to the general public and it requires a larger minimum share capital of SEK 500,000. It is run by a board of directors consisting of at least 3 members.

The private and the public limited companies have a memorandum of association and articles of association and they are registered with the Bolagsverket, following the payment of a fee and the submission of all the required documents.

The limited company will need to have a registered office in Sweden and this can be in the form of a virtual office.

Cryptocurrency company taxation

A locally registered company in Sweden (considered a tax resident company) is subject to the general taxation rules:

• Corporate income tax: the standard rate of 20.6% applies to the worldwide income of the resident company;
• Dividend tax: 0% withholding tax on dividends paid to residents. Foreign companies and non-resident individuals are subject to a general withholding tax of 20% and certain exceptions and reductions under a tax treaty apply;
• Value-added tax: the standard rate is 25% and there are two lower rates of 12% and 6%. Some types of goods and services are exempted;
• Other taxes: capital gains tax is imposed on cryptocurrencies at a flat rate of 30%.

Investors who open a cryptocurrency company are also interested, as a post-incorporation step, in matters concerning employees and the payments they need to make. There is no tax for payroll in Sweden, however, the company owner or employer will need to keep accurate records of the payments made to the crypto company’s employees. Our team can give you more details. 

Sweden is one of the most digitally advanced countries in the world. Investors who open a cryptocurrency company in Sweden benefit from a regime that favors these types of financial activities. Our team can also help foreign companies that wish to open a branch in Sweden.

Company formation in Sweden is easier with our help. Contact us if you want to know more about the services we provide to local and foreign investors.