Best Fintech Lawyers in Shumen

1. About Fintech Law in Shumen, Bulgaria

In Shumen, Fintech law operates within Bulgarian national law and European Union directives. The Bulgarian National Bank and the competent supervisory bodies regulate licensing, operations, and supervision of payment services, e-money, and related financial activities. Local fintechs in Shumen must comply with data protection, AML, and consumer protection rules just as firms in Sofia or Varna do. Regulations are consistently applied across Bulgaria, with EU directives shaping national implementation.

Fintech activity in Shumen commonly includes digital wallets, payment processing for local merchants, crowdfunding platforms, and small-lending services. Businesses must align with requirements for licensing, capital adequacy, and IT security, regardless of city size. A Shumen-based fintech should plan for cross-border considerations if serving Bulgarian customers who travel or transact with the EU.

2. Why You May Need a Lawyer

• Launching a payment services business in Shumen requires a licensed status. A local solicitor can prepare the license application to the Bulgarian National Bank, assemble governance and IT security documentation, and map risk controls. This process often involves 6 to 12 months from initial filing to authorization.
• Operating an e-wallet or card-emulation service for Shumen merchants requires compliance with PSD2 rules and EMI or PSP licensing. A legal counsel can assess the business model, ensure proper scope classification, and draft internal policies.
• Handling cross-border payments from Shumen clients triggers additional EU and Bulgarian requirements. An attorney can advise on passporting, AML/KYC obligations, and reporting duties for transactions involving other EU member states.
• Collecting and processing customer data demands GDPR alignment. A solicitor can help implement data mapping, DPO appointment where required, and data subject rights procedures to avoid fines.
• Onboarding customers with enhanced due diligence for higher risk profiles in Shumen needs robust AML controls. An attorney can implement risk-based KYC programs, suspicious activity reporting, and staff training.
• Planning a local crowdfunding or P2P lending platform requires regulatory classification and ongoing compliance. A specialized lawyer can determine whether the activity fits as lending, investing, or other regulated services and structure contracts accordingly.

3. Local Laws Overview

The Bulgarian regulatory framework for Fintech covers several core statutes, implemented to align with EU standards. The following laws govern most Fintech activities in Shumen and across Bulgaria:

• Law on Payment Services and Payment Systems (Закон за платежните услуги и платежните системи) - regulates payment institutions and e-money issuance, sets licensing requirements, and assigns supervisory responsibilities to the Bulgarian National Bank. It includes provisions aligned with the EU PSD2 framework and related IT security standards.
• Law on Measures against Money Laundering (Закон за мерките срещу изпирането на пари) - establishes customer due diligence, ongoing monitoring, reporting obligations, and cooperation with national and EU AML authorities. It targets financial service providers, including fintechs, to prevent illicit finance.
• Law on Personal Data Protection (Закон за защита на личните данни) - harmonized with the EU General Data Protection Regulation (GDPR). It governs processing of personal data by fintechs, including data security, cross-border transfers, and data subject rights.

"FATF guidance emphasizes risk-based AML and CFT controls for all financial services, including fintechs."

These laws are complemented by EU directives and local enforcement practices. For fintechs, the regulatory focus is on licensing, consumer protection, data privacy, and transparent, secure payment processing. Recent amendments continue to strengthen IT security requirements and cross-border compliance for Bulgarian providers.

4. Frequently Asked Questions

What is the Law on Payment Services and Payment Systems?

The Law on Payment Services and Payment Systems regulates PSPs and EMIs, licensing, and supervision in Bulgaria. It implements EU PSD2 rules and sets operational standards for payment processing.

How do I register a fintech as a PSP in Shumen?

You typically prepare a license application with the Bulgarian National Bank, provide governance and IT security details, and demonstrate capital adequacy. The process can take several months depending on complexity.

When did PSD2 rules become effective in Bulgaria?

Bulgaria implemented PSD2 provisions through updates to the national Payment Services Law around 2018, with ongoing adjustments for IT security and access to payment infrastructure.

Where do I file a complaint about a fintech service in Shumen?

Complaints about licensed payment services are typically handled by the Bulgarian National Bank and relevant consumer protection authorities. Your lawyer can guide you on the correct procedure and timelines.

Why is KYC essential for Bulgarian fintech providers?

KYC helps verify customer identity to prevent fraud and comply with AML rules. It reduces risk for both the provider and customers and supports cross-border compliance.

Can I operate an e-wallet without a Bulgarian EMI license?

No. Most e-wallet activities fall under EMI or PSP licensing, depending on the service scope. Licenses require governance structures, capital requirements, and IT security measures.

Should a fintech in Shumen appoint a Data Protection Officer?

GDPR obligations may require a DPO for certain processing activities, especially if large-scale or systematic monitoring occurs. A lawyer can assess whether a DPO is needed in your case.

Do I need to comply with GDPR for Bulgarian customers?

Yes. GDPR applies to all processing of personal data of Bulgarian residents, regardless of where the business is based. Bulgaria has implemented national measures to support GDPR compliance.

Is cross-border payments regulation different in Bulgaria?

Cross-border payments involve additional EU requirements, including transparency, reporting, and AML measures. Bulgarian fintechs must ensure compatibility with EU frameworks.

How long does licensing or authorization take in Bulgaria?

Licensing timelines vary by activity and complexity but often range from 6 to 12 months for PSPs or EMIs, assuming complete and accurate documentation.

What is the difference between EMIs and PSPs in Bulgaria?

EMIs issue electronic money and store funds; PSPs provide payment initiation or processing services. Some entities may perform both roles, subject to licensing conditions.

How much does licensing cost for a PSP or EMI in Bulgaria?

Costs include application fees, initial capital requirements, and ongoing supervision costs. Specific amounts depend on the service scope and licensing category.

5. Additional Resources

• FATF - Financial Action Task Force - International standards for AML and CFT; provides guidance for fintechs and supervisory authorities on risk-based controls. fatf.org.
• OECD - FinTech and Financial Innovation - OECD analyses and policy guidelines on fintech, digital finance, and regulatory environments. oecd.org.
• World Bank - Digital Financial Services - Resources on financial inclusion, digital payments, and regulatory considerations for emerging fintechs. worldbank.org.

6. Next Steps

1. Define your fintech activity precisely and map the regulatory scope in Shumen. Decide if you need a PSP, EMI, or other license and whether cross-border activities are planned.
2. Consult a Bulgarian-admitted attorney or solicitor experienced in Fintech law to review your business model and prepare a regulatory roadmap. Schedule an initial assessment within 1-2 weeks.
3. Prepare your documentation package with governance, risk management, IT security, and financial projections. Allow 4-6 weeks for draft preparation before submission.
4. Submit the license application to the Bulgarian National Bank or the appropriate authority. Plan for 6-12 months of processing, depending on complexity and clarifications requested.
5. Implement AML, KYC, and GDPR-compliant policies. Develop internal controls, staff training, and customer data protection measures with ongoing monitoring.
6. Establish ongoing compliance and reporting schedules. Set up annual audits, incident reporting, and periodic license renewals as required by law.
7. Maintain open communication with authorities and adjust policies as Bulgarian and EU regulations evolve. Revisit licensing status and compliance annually.