Regulation:

The Swedish government has adopted "En ny EU-reglering om marknader för kryptotillgångar" (A new EU regulation on markets for crypto-assets), which came into force on December 30, 2024, to align national laws with the MiCA and the Transfer of Funds Regulation.

It primarily addresses supervision, enforcement, and sanctions for entities operating within Sweden under MiCA.

Procedure, timelines, fees:

Following the full application of MiCA, i.e. after 30 December 2024, the FSA must assess within 25 working days of receiving an application for authorisation whether all of the required information has been included in the application. At this stage, however, the FSA will not assess the quality of the information provided. The FSA may ask the applicant to supplement the application if some or all of the required information is missing. The FSA will set a deadline for the submission of any missing information. After the submission of missing information, the FSA will have 40 working days to make a qualitative assessment of the application. During this period, the FSA has the opportunity to submit additional requests for clarification, but only the first of these requests will suspend the 40 working day assessment period, for a maximum of 20 working days.

The application must be made in Swedish. This requirement covers the application document and all descriptions and reports that must be attached to it. The business plan and internal steering documents on risk management, risk control, regulatory compliance, management of operational risks, outsourcing, continuity management, ICT security, complaint handling and instructions on measures against money laundering and terrorist financing with a general risk assessment must also be in Swedish.

In the case of third party agreements for the management of ICT risks, not all annexes to these agreements need to be submitted. It is up to the applicant to decide whether the content of these annexes is relevant for the assessment. If these are submitted, they do not need to be translated from English.

In connection with the application, a fee must be paid to FSA. The fee is based on FSA's estimated processing time. Thus, application for authorisation as a CASP costs SEK 135,000 - SEK 690,000 (approximately €12,000 - €61,000). The final cost depends on the complexity of the application, type of services offered, or the size of the company applying.

The possibility of applying a simplified procedure for the authorisation of CASPs under Article 143(6) of the MICA will not be used.

Transition period:

The government has proposed that providers of crypto-asset services operating in Sweden before December 30, 2024, may continue their operations without immediate authorization under MiCA until September 30, 2025, or until their application for authorization is either granted or denied. Thus, after October 1, 2025, only licensed businesses can legally operate in Sweden.

This grace period is designed to facilitate a smooth transition for businesses adapting to the new regulatory framework.

Physical office requirements

A CASP shall have a registered office in Sweden where it carries out at least part of their crypto-asset services.

Corporate Income Tax (CIT)

Sweden imposes a flat rate of 20.6%.

It is applied on all income of legal entities, while resident legal entities are liable for tax on their worldwide income unless special exemptions or tax treaties apply, non-resident legal entities are taxed on the income that originates from Sweden.

Regarding crypto taxation: companies engaged in cryptocurrency activities are subject to CIT at the standard rate on their crypto-related income.

Capital Gains Tax (CGT)

Capital gains are taxed at a flat rate of 30% for individuals. This applies to profits from the sale of assets such as stocks, bonds, and other investments.

Regarding crypto taxation: Individuals' profits from selling, trading, or exchanging cryptocurrencies are subject to a 30% capital gains tax.

Personal Income Tax (PIT)

The PIT rate for residents:

• from SEK 0 to SEK 625,800 (~ €55,300)- 0% national income tax + 32% municipal income tax
• over SEK 625,800 - 20% national income tax + 32% municipal income tax

Non-residents working in Sweden for a Swedish employer or a foreign employer with a permanent establishment in Sweden are taxed a flat PIT rate of 25%.

Regarding crypto taxation: if cryptocurrencies are received as payment for services or through activities like mining, they are considered income. Such income is taxed under the standard PIT rates, which include both national and municipal taxes.