Name
Global FinTech Guide
Country _ Name
Albania
SectionTitle
DLT and cryptocurrencies
Body
FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

Albania became one (1) of the first countries in Europe to adopt a regulatory framework for cryptocurrencies on 21 May 2020 – i.e.  Law no. 66/2020 on “DLT-based Financial Markets” (DLT Law). This law is applicable to all activities and subjects that perform their activity on financial markets based on Distributed Ledgers Technology (DLT) in and/or from the Republic of Albania. The law aims to regulate: (i) the issuance of digital tokens and virtual coins through Initial Coin Offering and Security Token Offering; (ii) licensing of activities related to DLT; (iii) monitoring and oversight of entities operating the distribution activity related to Digital Tokens and Virtual Coins; (iv) trading and storage of Digital Tokens and/or Virtual Coins; (v) the Digital Token agent; (vi) the innovative service provider; and (vii) the automated enterprises of collective Digital Token investment. Beyond Digital Tokens and Virtual Coins, the Law aims to monitor all infrastructure where DLT operates and defines a legal framework for cryptocurrencies. 

Nevertheless, at the moment in Albania, cryptocurrencies are used for investment purposes by a few individuals and are not accepted as a payment method. 

Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

The virtual assets legal framework in Albania is currently regulated by the DLT Law which entered into force on 1 September 2020, and law no. 9917, dated on 19.5.2008 “for the prevention of money laundering and financing of terrorism” (hereinafter the AML Law). 

The DLT Law regulates the issuance of Digital Tokens/Virtual currencies and the licencing, monitoring and supervision of entities that are engaged in the distribution, trading and custody of Digital Tokens and Virtual Currencies.

The abovementioned law provides for five (5) types of licences issued by the Albanian Financial Supervisory Authority – i.e. the Authority and, National Agency for Information Society (hereinafter the AKSHI), namely

  • Digital Token Agent license: issued by the Authority for legal persons that act as legal representatives of the licence holders while also carrying out and monitoring all the regulatory obligations thereof.
  • DLT Exchange license: issued by the Authority and AKSHI for platforms facilitating the exchange of digital tokens, virtual currencies, and FIAT money. These are separated into three (3) categories, depending on the type of tokens that are listed for trade (i.e. Utility Tokens, Asset Tokens, Payment Tokens and Security Tokens).
  • Third Party Custodian Wallet Provider license: issued by the Authority and AKSHI for entities carrying out custody services for holders of digital tokens/virtual currencies.
  • Innovative Service Provider: issued by the Authority for entities that act as system auditors and carry out all technological assessments in the name and on behalf of the license holder.
  • Automated Collective Investment Undertaking license: issued by the Authority for collective

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