Summary
- In recent years, the authorities have attempted to portray Montenegro as a burgeoning crypto hub, but progress has been limited, largely due to a lack of dedicated crypto legislation.
- The country has amended existing regulations to address some aspects of crypto but comprehensive crypto legislation remains elusive.
- Political instability has hampered progress, but the hope remains that proposed crypto legislation will materialize in 2026, transforming Montenegro’s crypto landscape in line with international standards and emerging sectoral trends.
- For more information on how crypto is being used in countries worldwide, visit our Crypto in Action page.
How is crypto used in Montenegro?
In terms of overall crypto adoption, Montenegro ranked 104th in 2025, but when adjusted for its population size, this figure rose to 8th.
The small Balkan country has a population of just over 623,000 people. While there is no firm data of how many Montenegrins use crypto, estimates put this at anywhere between 1.16% and 3%.
Those who own crypto have reportedly used it for a range of products and services, including property transactions, cars and in one well-documented incident, the purchase of a cow – later name Bitkoinka – for 0.03 Bitcoin.
For the most part, it is foreigners who carry out large crypto transactions, particularly of property. The start of the Ukrainian war in 2022 saw the arrival of Russian and Ukrainian individuals who, without access to local banking, used crypto to effectively live in Montenegro. Another sizable group using crypto in the country is reportedly Turkish.
What is the authorities’ attitude towards crypto?
Crypto has a chequered history in Montenegro. Parliamentary elections in August 2020 ended the 30-year rule of President Milo Ðjukanović. Among the new government’s key figures was Milojko Spajić, a former trader, who assumed the role of finance minister.
Having traded in cryptocurrencies, among other things, Spajić’s attitude towards the sector was welcoming and the government saw crypto and blockchain development as important to Montenegro’s longer-term growth.
In December 2020, Spajić announced a number of regulations designed to make the country a “crypto paradise”. By 2022, he was suggesting that crypto could account for almost one-third of the country’s economic output by 2025.
This prompted a swift opening up of Montenegro to crypto enthusiasts. Much was made of how the country would rapidly become a crypto hub. Notably, Ethereum founder, Vitalik Buterin, was granted citizenship, something he accepted during a crypto event held in the capital, Podgorica, in 2022. Following this, Buterin set up a two-month pop-up crypto hub – Zuzalu – to demonstrate Montenegro’s crypto credentials.
Alongside these moves, parliament passed the necessary legal framework to support digital nomads, offering them temporary residence for up to two years, with the option to extend for an additional two years.
Other developments included:
- Talk of Bitcoin being used to help tap the country’s significant hydroelectric potential, with the authorities envisaging hydropower supporting crypto mining activities that could use excess, off-peak or stranded energy.
- An agreement was signed by the central bank with payment and blockchain provider, Ripple, to develop and launch a digital currency.
Challenges stymie crypto’s promise
Reflecting this high level of support, tabling crypto legislation should have been straightforward, but political instability and politicking have repeatedly hobbled progress since the idea of drafting crypto legislation was first mooted in 2021.
One example was the Directorate for Cryptocurrencies and Blockchain. Created in November 2021, it was tasked with formulating a legal framework for the mining and use of crypto and blockchain. As a result of political infighting, however, it achieved little and was disbanded in August 2022.
The government of prime minister Dritan Abazović, leader of the United Reform Action party, lost a confidence vote in early 2022, following which several unsuccessful attempts were made to form new governments, until in March 2023, the president dissolved parliament, prompting elections.
Days before these parliamentary elections, it was reported locally that disgraced founder of the Luna and Terra cryptocurrencies, South Korean national, Kwon Do-hyeong (known as Do Kwon), had written to Abazović, claiming he was financing Spajić’s party, the centrist Europe Now. Specifically, he said he’d been promised crypto-friendly policies in return for funding and that he had a “very successful investment relationship” with Spajić. Do Kwon had been arrested in Montenegro in 2023 traveling on a false passport.
Abazović confirmed he’d received such a letter and called on prosecutors to investigate, while Europe Now rejected the claims as part of a smear campaign. Spajić denied wrongdoing and an investigation found no evidence of such, although he admitted to meeting Do Kwon.
Alongside politicking, the attitude of key institutions has also vacillated. The Central Bank of Montenegro is a good example. It has said that conducting business transactions using crypto is neither prohibited nor restricted, but also highlighted the need for caution over the risks the unregulated sector poses.
It has rejected introducing what it describes as quick or incomplete regulatory solutions that could increase these risks, but by failing to settle on a comprehensive approach, gray areas have emerged. Lacking oversight has provided the opportunity for criminal groups to move funds across the country’s borders.
Furthermore, there are no established procedures for financial crime, creating law enforcement issues, domestically and internationally. It is, for example, difficult to pursue an international crypto case through Montenegrin courts because of lacking legislation and processes.
The European Commission (EC) has raised its concerns about Montenegro’s progress towards EU accession, and notably in a 2023 report, flagged the issue of its unregulated crypto market.
In the face of the threat of inclusion on the FATF’s Grey List in 2023, the authorities amended the country’s anti-money laundering laws.
The advent of legislation
The authorities have signaled their desire to finalize virtual asset legislation in 2026. In September 2025, Prime Minister Spajić announced that a law would soon be adopted that would conform with Europe’s Markets in Crypto-Assets Regulation (MiCA) legislation, and that the finance ministry had launched a public consultation on draft legislation. The authorities have reportedly set the creation of new supervisory structures as a priority.
The authorities have also amended a number of pieces of existing legislation. In February 2025, parliament adopted amendments to the Law on the Prevention of Money Laundering and Terrorist Financing. This incorporated recommendations from a number of external agencies, including the OECD and the EC’s Directorate-General for Financial Stability, Financial Services, and Capital Markets Union (DG FISMA).
The amendments saw crypto assets defined, and outlined a range of services associated with crypto assets. These include:
- Custody and management of crypto assets on behalf of clients;
- Operation and management of crypto asset trading platforms;
- Exchange of crypto assets for fiat currency;
- Exchange of crypto assets for other crypto assets; and
- Execution of crypto asset orders on behalf of clients.
In addition, Montenegro’s state regulator, the Capital Market Commission, was tasked with introducing a Register of Crypto-Asset Service Providers (CASPs), who in turn, are now required to apply KYC verification measures for all transactions exceeding €1,000.
In December 2025, the cabinet passed amendments to the Law on Credit Institutions to bring its banking legislation in line with that of the EU’s. Among the crypto-related provisions were standards related to digital operational resilience and crypto-assets.
Additionally, pending changes to the Law on Tax Administration are expected to enable local tax authorities to exchange information on digital assets with EU countries and institutions within the member states. CASPs registration will also result in the obligation to file formal reports with the tax authorities.
Timeline of crypto developments
2014
In November, the central bank issued a warning stating that virtual currencies were not legal tender and that individuals may own Bitcoin, but at their own risk.
2020
Police uncovered the first case of cryptocurrency mining, seizing 250 computers and arresting two individuals on the basis that they had illegally used electricity to mine.
In December, after becoming finance minister, Spajić announced regulations designed to make the country a “crypto paradise”.
2021
In November, the authorities established the Directorate for Cryptocurrencies and Blockchain. It was given the task for creating a legal framework for crypto and blockchain use as well as mining.
2022
The Directorate for Cryptocurrencies and Blockchain was disbanded in August.
In November, a working group was established within the Financial Stability Council (the state advisory body responsible for monetary and financial policy) to analyze digital asset models and draft legislation.
Spajić suggested that the crypto sector could account for almost one-third of the country’s economic output by 2025.
2023
In March, Do Kwon was arrested at Podgorica’s airport for traveling using a forged passport.
A month later, the central bank signed an agreement with Ripple to develop a digital currency.
In December, Prime Minister Spajić admitted he’d met Do Kwon, but said he wasn’t aware that arrest warrants had been issued for him.
2024
In December, it was ruled that Do Kwon would be extradited to the US.
2025
In February, parliament passed amendments to the Law on the Prevention of Money Laundering and Terrorist Financing.
Prime Minister Spajić announced in September that a law would be soon adopted to ensure that Montenegro conformed with EU standards on digital assets.
The Capital Market Commission was given a mid-December deadline to create the Register for CASPs.
The same month, the cabinet passed amendments to the Law on Credit Institutions to bring Montenegro’s banking legislation in line with that of the EU.
Outlook
Amendments have introduced some oversight, but crypto is a fast-developing sector globally, and more comprehensive measures are required to both address the challenges and cement opportunities.
Positively, Montenegro is shifting toward an EU-aligned position in terms of its approach and the legislative environment for digital assets. As this develops, the gray areas should be dealt with, and those involved in the sector will have a more transparent environment that offers greater protections in which to operate.
Whether this will be sufficient to help Montenegro develop into a crypto and blockchain hub is less clear. Political infighting and actions that don’t match policy words have created a haphazard environment rather than created the booming sector that was envisaged several years ago.
