Crypto Regulations in Albania
The Albanian Financial Supervision Authority approved a licensing regime for cryptocurrency exchanges, a first for the region, strengthening a crypto law passed in 2020. The law refers to distributed ledger technology exchanges which are exchanges where blockchain is used along with digital tokens, digital assets, and those that use both digital assets and fiat currency. Under the licensing regime, DLT exchanges will fit under one of three categories; those that use just digital assets and digital tokens, those that use fiat and virtual currency, and those that trade digital securities.
Source: Euractiv
The law contains 107 articles. Article No.1 provides: “The object of this law is the regulation of the issuance of digital tokens and/or virtual currencies, licensing, monitoring and the supervision of entities that exercise the activity of distribution, trading and storage of digital tokens and/or virtual currencies, of the digital tokens agent, of the provider of innovative services and collective investment schemes. The new law follows prior remarks in 2017 from the Bank of Albania, which provided that the then-legal and regulatory framework in place did not envisage carrying out operations with cryptocurrency in Albania and users were exposed to certain risks. The Bank noted risks due to the high degree of anonymity, transactions in such currency may be misused for criminal activities, including money laundering, terrorism financing, or the smuggling of goods.
Source: Freeman Law
As cryptocurrency is now widely used, the need for legal regulation has arisen. Albania is one of the first countries to adopt a law regulating the cryptocurrency market. On May 20, 2020, Law no. 66/2020 “On financial markets based on distributed registry technology”, otherwise known as the “law on cryptocurrency”, made Albania the 3rd country in Europe the official legalization of cryptocurrency. At first glance, the law seems quite detailed, although it has received numerous criticisms, describing it as a hasty decision with the argument that Albania, in all its economic elements, is not yet ready and prepared for cryptocurrency.
Source: Vision Consulting Albania
The law refers to distributed ledger technology exchanges which are exchanges where blockchain is used with digital tokens, digital assets, and people using both digital assets and fiat currency. Under the licensing regime, DLT exchanges will fit under one of three categories; Those who use only digital assets and digital tokens, those who use fiat and virtual currency, and those who trade digital securities.
Source: Business News
In 2020, the 2.8-million-person nation made the news as the third European country to introduce comprehensive regulations for digital assets. The bill, “Financial markets based on distributed ledger technology,” outlined risk management requirements for virtual assets service providers (VASPs) in the country. According to the proponent of the bill, Finance, and Economy Minister Anila Denaj, the bill was intended to harness the potential of distributed ledger technology. However, critics have said that it does not adequately prevent using digital assets for money laundering.
Source: Coin Geek
Albania is reportedly planning to tax income generated from crypto assets from 2023, according to a new draft law. Exit News reported that the tax draft will become law by end of this year, making way for a new crypto taxation regime the following year. The draft is said to be at the public consultation stage at the moment. The draft also underlines the definition of the virtual asset class, emphasizing: “A digital representation of a value that can be deposited, traded or transferred in digital form, and that can be used for payment or investment purposes or as a medium of exchange, including but not limited to cryptocurrencies.”
Source: Beincrypto
Authorities in Albania are finalizing regulations that will allow the taxation of income and profits from cryptocurrency assets and investments. The government intends to begin imposing the levy in 2023, after adopting the necessary legislation which is currently open for public consultations. It introduces the concept of taxing crypto holdings and the income derived from virtual assets. However, the definition does not cover central bank digital currencies (CBDCs).
Source: Fiscal Solutions
Albanian Financial Supervision Authority has approved a licensing regime for crypto exchanges for the first time in the region. It is aimed at strengthening a 2020 crypto law. The law will be applicable to digital currency exchanges that use blockchain’s distributed ledger technology to hold digital tokens and assets. Under the newly introduced licensing regime, DLT exchanges will fit under one of three categories; those that use just digital assets and digital tokens, those that use fiat and virtual currency, and those that trade digital securities. The licenses will be issued based on submitting detailed documentation, including company organization, business plans, source of capital, and reputation.
Source: Shufti Pro
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At the request of Ankara, Albanian police arrested the founder of what was once one of Turkey’s biggest cryptocurrency exchanges that turned out to be one of the largest scams in the country’s economic history, the Turkish Interior Ministry announced Tuesday. Faruk Fatih Ozer, the 28-year-old founder, and chief executive 2017 of the now-defunct Thodex, is charged with fleeing Turkey with over US$2 billion in investors’ crypto assets.
Source: OCCP Org
Fugitive Turkish crypto fraud suspect arrested in Albania resort TIRANA, Aug 30 (Reuters) – Albanian police on Tuesday arrested the fugitive Turkish founder of crypto-exchange Thodex, wanted by Interpol for suspected crypto fraud and at large for a year, police and media said. Albanian and Turkish media identified the suspect as Faruk Fatih Ozer. The Turkish interior ministry said authorities had launched extradition proceedings. Police referred to the suspect only by the initials F.O. and said the 28-year-old was arrested in the southern resort area of Himare along with two Albanian helpers in an operation codenamed “Brain”.
Source: Reuters
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