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On July 31, 2026, the Government of the Federation of Bosnia and Herzegovina launched a public consultation on draft legislation to comprehensively regulate its capital markets and virtual asset services for the first time. The Federal Ministry of Finance submitted the Draft Law on Capital Markets and the Draft Law on Virtual Asset Service Providers (VASPs), alongside a proposed amendment to the Law on Factoring, for public discussion. The Draft Law on Capital Markets aligns the federation's regulatory framework with contemporary European standards, strengthening the role of capital markets as a financing source for the economy. The legislation establishes clearer operational rules, enhanced investor protection and increased investor confidence. The Draft Law on VASPs establishes the federation's first comprehensive regulatory framework for virtual asset service providers, following European and global trends in digital finance. This framework defines service provider obligations, operational conditions and regulatory oversight to increase user security and legal certainty in digital finance development. The Federal Ministry of Finance is also finalising a new Law on the Securities and Market Capital Commission, which will complete the capital markets reform. This legislation will strengthen regulator independence and effectiveness through clearer supervisory powers, enhanced institutional capacity and application of European best practices. The proposed amendments to the Law on Factoring aim to remove administrative barriers and strengthen factoring as an alternative financing source, particularly for micro, small and medium-sized enterprises. These reforms form part of the broader agenda to reduce business burdens, increase financing accessibility and improve the business environment. Following the public consultation period, all three laws are scheduled for submission to further legislative procedures in September 2026. At this current time, the Federation of Bosnia and Herzegovina has not published the official consultation. Vixio will update this information once further information becomes available.