New law to regulate crypto in Bulgaria
Bulgaria is drafting a law to align with the EU's Markets in Crypto-Assets Regulation (MiCa) framework which is designed to create an all-encompassing legal framework for the regulation of crypto assets. While these regulations may challenge smaller companies, they promise to increase competition and innovation and stabilize the market. They will also offer more security and better products for investors.
Bitcoin was created to bypass traditional financial systems, envisioning a world without central banks or regulators. However, 15 years later, regulations have become crucial for the crypto sector's legitimacy and growth, particularly in the U.S., where regulatory approval has significantly impacted market performance.
Medical sector uses pirate software
Bulgaria owes American multinational computer technology company Oracle millions of leva for the unlicensed use of its software in the Specialized Electronic System for Tracking and Analysis of Medicinal Products (SESPS). The system, developed by the Ministry of Health between 2018 and 2020 and later transferred to the Executive Agency for Medicines, has been operating with Oracle products without a license since its launch in August 2020.
As of February 2023, Bulgaria owed Oracle 1.89 million levs, but no payments had been made. Other issues include the system's reliance on a single server and incorrect data reporting, raising concerns about potential legal and operational risks.
Global factors slow Bulgarian industry growth
Bulgaria's industrial sector is currently experiencing stagnation, largely due to the slowdown of the European economy, especially in Germany. Many businesses, such as Technical Components Bulgaria, are halting hiring plans, and some are even reducing operations and staff.
Industrial output has fallen by around 15% from its peak, and exports have dropped by 4.7% in 2024 compared to the same period in 2023. The decline is partly due to a cooling down after rapid growth, but structural issues, such as rising energy costs and the lack of political stability, are exacerbating challenges for the industry.
New law to regulate crypto in Bulgaria
Bulgaria is drafting a law to align with the EU's Markets in Crypto-Assets Regulation (MiCa) framework which is designed to create an all-encompassing legal framework for the regulation of crypto assets. While these regulations may challenge smaller companies, they promise to increase competition and innovation and stabilize the market. They will also offer more security and better products for investors.