Financial Crime World

Albania Cracks Down on Cryptocurrency Financial Crime

New Regulations Aim to Combat Money Laundering and Protect Citizens

TIRANA, ALBANIA - In a bid to curb financial crime and protect its citizens from the risks associated with cryptocurrency, Albania has introduced new regulations governing digital currencies.

Key Provisions of the Law

  • The “On Financial Markets Based on Distributed Ledger Technology” law was passed by the Albanian Parliament on May 21, 2020, and went into effect on September 1, 2020.
  • The law contains 107 articles aimed at regulating the issuance and trading of digital tokens and virtual currencies.
  • Entities that exercise the activity of distribution, trading, and storage of digital tokens and/or virtual currencies must be licensed, monitored, and supervised by the relevant authorities.

Risks Associated with Cryptocurrency Use

  • Anonymity: Cryptocurrency transactions can be difficult to track, making it challenging to identify the parties involved.
  • Money laundering: Cryptocurrencies have been linked to money laundering activities due to their ability to facilitate anonymous transactions.
  • Terrorism financing: Cryptocurrencies have also been used to finance terrorist activities due to their ease of use and anonymity.
  • Smuggling of goods: Cryptocurrencies can be used to facilitate the smuggling of goods across borders.

Implications for Crypto Miners and Traders

  • The new regulations have implications for crypto miners and traders operating in Albania, who must now comply with the country’s laws and regulations.
  • Compliance will require entities to obtain licenses, submit to monitoring and supervision, and establish digital tokens agents and innovative services providers.

Global Cryptocurrency Landscape

  • As more countries around the world introduce similar regulations, it remains to be seen how the global cryptocurrency landscape will evolve.
  • The move is a significant step towards combating financial crime in Albania and protecting citizens from the risks associated with cryptocurrency use.