Fintech
Why Bulgaria
Bulgaria has established itself as an increasingly important fintech market in Central and Eastern Europe. A strong technology sector, highly skilled professionals, competitive operating costs and access to the European Union market have created a favourable environment for financial technology businesses.
Domestically founded fintech companies are increasingly competing internationally, while international businesses are using Bulgaria as a base for developing and providing technology-driven financial services within the EU.
Sofia has developed a growing ecosystem of fintech companies, financial institutions, technology businesses and investors. The combination of technological expertise and a competitive business environment makes Bulgaria an attractive jurisdiction for businesses seeking to develop innovative financial products and expand into the European market.
For fintech businesses, however, innovation must operate within an increasingly complex legal and regulatory environment. Financial services remain highly regulated, and the use of technology introduces additional considerations relating to licensing, consumer protection, data, cybersecurity, outsourcing and financial crime.
Our lawyers combine financial services, corporate, technology and regulatory expertise to help fintech businesses navigate these requirements while keeping their commercial objectives at the centre of the advice.
Regulatory Landscape
The European fintech sector is subject to an increasingly comprehensive legal framework covering payments, electronic money, financial services, digital finance, data protection, cybersecurity, operational resilience and anti-money laundering.
Depending on the nature of the business and services provided, fintech companies may be subject to legislation including PSD2, the Electronic Money Directive, DORA, GDPR, EU AML legislation and the regulatory framework applicable to investment and financial services.
In Bulgaria, the relevant legal framework is supplemented by national legislation and the supervisory requirements of the competent Bulgarian authorities, including the Bulgarian National Bank and the Financial Supervision Commission.
Determining whether a fintech business requires a licence or registration is often the first legal issue to be addressed. The regulatory classification of a business model, the structure of its activities and the way in which services are provided can significantly affect the applicable legal requirements.
We advise clients on the legal and regulatory framework applicable to their business, assist with licensing and regulatory matters, and help structure fintech activities in a manner that is legally sound, commercially viable and capable of supporting future growth.
Who We Advise
Fintech Companies
We advise established fintech companies on their day-to-day legal and regulatory requirements, including licensing, regulatory compliance, commercial arrangements, corporate matters and expansion into new markets. We provide ongoing legal support as businesses develop new products, enter into strategic partnerships and navigate an increasingly complex regulatory environment.
Fintech Startups
We advise fintech startups and founders from the earliest stages of establishing their business, including business structuring, regulatory classification, licensing requirements, corporate arrangements and investment. Our advice is designed to help founders build legally sound business models while creating a structure capable of supporting future growth and international expansion.
Payment Institutions and E-money Institutions
We advise payment institutions and electronic money institutions on licensing, regulatory requirements, governance, contractual arrangements, safeguarding, outsourcing and ongoing legal compliance.
Banks and Financial Institutions
We assist banks and financial institutions with technology-driven products, partnerships with fintech companies, outsourcing arrangements, digital financial services and regulatory matters arising from technological innovation.
Investment and WealthTech Businesses
We advise investment platforms, WealthTech companies and other technology-driven financial businesses on licensing, regulatory classification, contractual arrangements, investor protection and cross-border activities.
Fintech Investors and Founders
We advise founders, shareholders, venture capital funds and other investors on the establishment, financing, acquisition and restructuring of fintech businesses, including legal and regulatory due diligence.
Our Services
Regulatory & Licensing
- Legal and regulatory classification of fintech business models
- Licensing and registration requirements
- Payment institution and electronic money institution licensing
- Regulatory structuring and legal compliance assessments
- Preparation and review of licensing documentation
- Regulatory representation and engagement with competent authorities
Payments & Digital Financial Services
- Legal advice on payment services and electronic money
- Payment initiation and account information services
- Digital banking and Banking-as-a-Service arrangements
- Open banking and embedded finance
- Digital lending, crowdfunding and investment platforms
- Legal structuring of innovative financial products and services
Corporate & Commercial
- Incorporation and corporate structuring of fintech businesses
- Shareholders’ agreements and investment arrangements
- Joint ventures and strategic partnerships
- Commercial agreements with financial institutions and technology providers
- Technology, software, outsourcing and white-label agreements
- Terms and conditions and customer agreements
Fintech Transactions & Investments
- Legal and regulatory due diligence
- Venture capital and private equity investments
- Financing and investment rounds
- Share acquisitions and disposals
- M&A involving fintech and regulated businesses
- Regulatory aspects of acquisitions, disposals and change of control
AML, Data Protection & Regulatory Compliance
- AML and KYC legal requirements
- Customer due diligence and beneficial ownership
- AML policies, procedures and risk assessments
- GDPR and data protection advice
- DORA, cybersecurity and ICT regulatory requirements
- Outsourcing, operational resilience and regulatory compliance
Disputes & Regulatory Proceedings
- Commercial and contractual disputes
- Payment and financial services disputes
- Regulatory investigations and enforcement proceedings
- Fraud and financial crime-related disputes
- Shareholder and founder disputes
- Court proceedings and representation before regulatory authorities