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| Cryptocurrencies |
The law, which was turned for review by the President of the Republic, as a risk of money laundering, is expected to enter into force on September 1.
In the same Official Gazette was adopted the decision of the Assembly that overturns the decree of the President, paving the way for the official use of virtual currencies in the country.
Albania thus becomes one of the few European countries that legalizes and regulates the legal framework for virtual currencies.
To date, only two countries in Europe have taken steps to implement certain legislation on virtual assets, which are not covered by the existing European Union framework. Thus, Malta has in force a law on virtual assets, France adopted the law in April 2019, according to the report accompanying the draft law.
The law aims to regulate, prohibit in case of abuse and take penalties related to virtual activities and related services, emphasizing that regulation is an option that is being embraced in many countries, as an alternative to control and well-being.
Digital tokens and virtual currencies are a type of virtual asset, essentially dependent on Distributed Ledger Technology (DLT), that give users rights of ownership, or can be used as a payment instrument or utility, in the process of purchasing products or services, is explained in the report.
The report, which accompanied the law, acknowledged that as there are benefits there are also risks
"To make the most of the benefits that this technology offers, but also to address a range of potential risks, such as the creation of fraudulent schemes, or unauthorized schemes to provide virtual assets, the risk of using virtual assets to money laundering, as well as market manipulation, a complete legal framework is needed in order for this activity to be regulated,” the report reads.
The report acknowledges that money laundering is one of the risks associated with using virtual currencies.