Financial Crime World

Albania Faces Growing Concerns Over Cryptocurrency-Related Financial Crime

Tirana, Albania - The Albanian government has taken steps to regulate the rapidly expanding cryptocurrency market by introducing new licensing requirements for companies involved in digital tokens and virtual currencies. However, experts warn that the country’s financial institutions are still vulnerable to cryptocurrency-related financial crime.

New Licensing Requirements for Cryptocurrency Companies

The Albanian regulatory authority, AKSHI, has implemented strict criteria for companies seeking to operate in the cryptocurrency space. To obtain a license, companies must meet the following requirements:

  • Minimum Initial Capital: 20 million ALL (approximately 170,000 EUR) for DLT exchanges
  • Registration and License Fees: ranging from approximately 850 EUR to 8,500 EUR

Enhanced Anti-Money Laundering Law

The country’s Anti-Money Laundering (AML) law has been amended to include Virtual Assets and Virtual Asset Service Providers as subjects of the law. As a result, FinTechs are required to undertake due diligence and enhanced due diligence procedures when interacting with their clients.

Despite these measures, experts warn that Albania’s financial institutions remain vulnerable to cryptocurrency-related financial crime. “The country’s lack of experience in regulating virtual currencies makes it an attractive target for cybercriminals,” said Dr. Elona Gjebrea, a leading expert on financial crime in Albania.

Government Response: A Comprehensive Regulatory Framework

The Albanian government has acknowledged the risks associated with cryptocurrency and is working to establish a comprehensive regulatory framework to address these concerns. However, experts warn that more needs to be done to protect the country’s citizens from falling victim to cryptocurrency-related scams and cyber attacks.

Conclusion

As the market for financial services using cryptocurrencies continues to grow in Albania, companies operating in this space must prioritize due diligence and risk management to avoid being caught up in a wave of financial crime.