Albania Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): General Directorate for the Prevention of Money Laundering, Bank of Albania, Albanian Financial Supervisory Authority
Primary Legislation: Law No. 97/2020, dated October 22, 2020, “On Virtual Assets” (Ligji Nr. 97/2020, On some additions and changes to Law No. 9/2020 on preventing money laundering and financing of terrorism, This is the foundational law. Finding a direct, stable English translation link, While not specific to virtual assets, this is the overarching AML/CTF law that V, Law No. 9879/2008, The Law No. 97/2020 explicitly permits the operation of virtual asset exchanges, Practical Implementation Challenge - Lack of Licensed Entities: Despite the law, Albania's Law 66/2020 on Financial Markets Based on Distributed Ledger Technolog, Albania's 2023 Income Tax Law (effective from 1 January 2024) specifically class, Law No. 1262, 2018
Travel Rule: Adopted — Threshold: ,
Tax Reporting: Treatment: Although there's no specific "crypto capital gains tax" law, virtual assets are generally treated as movable property or financial assets for tax purposes. Therefore, profits derived from the sale or exchange of cryptocurrencies are likely subject to capital gains tax.. A taxable event occurs when a cryptocurrency is disposed of, including crypto-to-crypto trades, triggering a 15% capital gains tax.. Sold for fiat currency.. Exchanged for another cryptocurrency (crypto-to-crypto trades).. Exchanged for goods or services.

Key Facts

aml Law No. 119/2019 "On Preventing Money Laundering and Terrorism Financing" (Ligji Nr. 119/2019 "Për parandalimin e pastrimit të parave dhe financimit të terrorizmit"). Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets. Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset. Natural Persons: Identifying and verifying the identity of the customer and any beneficial owner using reliable, independent source documents, data, or information (e.g., identity cards, passports, official residence documents). Legal Entities: Identifying and verifying the identity of the customer, including its name, legal form, address, proof of incorporation, and powers that regulate and bind the legal person. This also extends to identifying and verifying the identity of the natural persons who hold senior management positions and the beneficial owners.
enforcement Entity Targeted: Faruk Fatih Özer, founder and CEO of the Turkish cryptocurrency exchange Thodex. Violation Type: International fraud, money laundering (related to the collapse of the Thodex exchange, which defrauded hundreds of thousands of users of an estimated $2 billion). The Albanian action related to his illegal entry and residence, and the execution of the international arrest warrant. Penalty Amount (Albania): No specific "penalty amount" was imposed by Albanian authorities on Özer directly for the crypto fraud. The outcome in Albania was his arrest and successful extradition. Outcome: Faruk Fatih Özer was arrested in Vlora, Albania, following an international manhunt. After a period of legal appeals, he was extradited to Turkey, where he faced trial. In Turkey, he was subsequently sentenced to 11,196 years in prison in September 2023 for aggravated fraud, leading a criminal organization, and money laundering.
general Albania – Enlargement and Eastern Neighbourhood: https://enlargement.ec.europa.eu/countries/albania_en Albania: Country Profile (Freedom House): https://freedomhouse.org/country/albania Permits, Licenses & Authorizations Register (Albanian Government): https://qkb.gov.al/en/permits-licenses-authorizations/ Albania – Licensing Requirements (U.S. Trade Guide): https://www.trade.gov/country-commercial-guides/albania-licensing-requirements Albania – Licensing Requirements for Professional Services (U.S. Trade Guide): https://www.trade.gov/country-commercial-guides/albania-licensing-requirements-professional-services Albania - Enlargement and Eastern Neighbourhood Permits, Licenses & Authorizations Register Albania - Licensing Requirements for Professional Services
licensing Law No. 110/2020 "On Financial Markets Based on Distributed Ledger Technology": This is the foundational legal act regulating DLT-based financial markets and virtual assets in Albania. It defines virtual assets, DLT service providers, and sets out licensing and operational requirements. Official Albanian Source (Kuvendi i Shqipërisë - Parliament of Albania): Ligji Nr. 110/2020 "Për Tregjet Financiare Të Bazuara Në Teknologjinë E Regjistrit Të Shpërndarë" A direct official English translation URL is not readily available from government sources, but reputable legal firms have summarized or translated it. Authorization from FSA: Any entity intending to offer DLT services, including custody of virtual assets, must obtain prior authorization from the FSA (Article 12). Legal Form and Capital: Applicants must be established as legal entities in Albania and meet minimum capital requirements, which are determined by secondary legislation issued by the FSA. Governance and Management: Requirements for sound and prudent management, including "fit and proper" criteria for directors and significant shareholders, robust internal control mechanisms, risk management procedures, and administrative arrangements. Operational Capacity: Adequate technical and human resources to perform the intended services securely and efficiently. This implicitly covers aspects like cybersecurity, data protection, and operational resilience. AML/CFT Compliance: Strict adherence to anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, including customer due diligence (CDD), suspicious transaction reporting, and internal AML policies. These are primarily governed by Law No. 111/2019 "On Preventing Money Laundering and Terrorism Financing."
securities The Albanian financial market now includes explicit regulation of cryptocurrencies and digital assets under Law no. 66/2020, reducing the claim that such regulation is limited. The Bank of Albania oversees the issuance and trading of government securities, but Albania has enacted Law No. 66/2020 on DLT/Fintoken markets, which establishes a regulatory framework for cryptocurrencies and DLT-based financial instruments under the Albanian Financial Supervisory Authority, separate from the Bank of Albania's mandate. The Albanian Securities Register (ALREG) now includes digital assets, eliminating the previously noted gap. No licensing requirements are explicitly stated for cryptocurrency exchanges or initial coin offerings (ICOs) within the current Albanian financial market regulations. Existing anti-money laundering (AML) and know-your-customer (KYC) requirements apply to traditional banking and securities transactions but extend inadequately to cryptocurrency activities. Recent enforcement actions in Albania have included specific cases addressing cryptocurrencies, contrary to the earlier claim of no such documented instances. Cryptocurrency capital gains are explicitly taxed at a flat 15% under personal income tax in Albania. The regulatory landscape lacks clear guidelines for cryptocurrencies and digital assets, posing significant compliance risks for market participants.
stablecoin Law No. 66/2020 (not 110/2020) 'On Financial Markets Based on Distributed Ledger Technology' entered into force on September 1, 2020, and remains the primary comprehensive crypto regulatory framework in Albania, though the government may be developing supplementary legislation. Albania's payment services are currently governed by Law No. 55/2020 'On Payment Services' (as amended), which approximates Albanian legislation with EU Directive 2015/2366, replacing the earlier Law No. 9918/2008. Albania's current securities/capital markets framework is governed by Law No. 119/2016 'On Financial Markets', which has superseded the earlier Law No. 9879/2008 'On Securities' (as amended), now only of historical/transitional relevance. Law No. 157/2014 "On the Prevention of Money Laundering and Terrorism Financing" (Ligji Nr. 157/2014 "Për parandalimin e pastrimit të parave dhe financimit të terrorizmit"), which extends to virtual asset service providers (VASPs). Autoriteti i Mbikëqyrjes Financiare (AMF) - Financial Supervisory Authority: The primary regulator responsible for licensing and supervising entities operating under Law No. 110/2020. Banka e Shqipërisë (Bank of Albania): The central bank, responsible for monetary policy, financial stability, and supervision of payment systems and e-money institutions. It has also issued warnings regarding the risks of virtual assets. Stablecoins are classified into distinct regulatory categories across major jurisdictions: EU's MiCA regulates 'e-money tokens' (pegged to single fiat) and 'asset-referenced tokens'; US SEC guidance states 'Covered Stablecoins' (USD-pegged, fully reserved) are not securities; UK regulates 'payment stablecoins' and 'fiat-backed stablecoins'. Classification depends on structure, peg, reserves, and marketing. Law No. 110/2020 defines "virtual assets" broadly as a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes. It does not explicitly differentiate between stablecoins and other virtual assets based on their backing mechanism.
status The Albanian regulatory framework currently lacks specific provisions directly targeting cryptocurrencies and digital assets, resulting in a gap in oversight and compliance requirements for entities operating in this space. According to the European Commission's report on Albania's progress towards EU enlargement as of October 2023, no dedicated legal text addresses cryptocurrency activities, confirming the absence of such regulations. Albania - Enlargement and Eastern Neighbourhood While Albania has made strides in aligning its legal framework with EU standards through the enlargement process, the specific classification and regulation of digital assets remain unclear, necessitating further legislative action. The latest progress report highlights ongoing alignment efforts but notes that cryptocurrency-specific regulations are pending. Albania - ENNHRI Albania has enacted Law No. 66/2020 'On Financial Markets Based on Distributed Ledger Technologies', which explicitly regulates digital assets, and is actively aligning its legal framework with EU MiCA and AML directives as part of its EU accession process, meaning the current landscape is not a regulatory void. No specific licensing requirements have been established for cryptocurrency exchanges or digital asset service providers in Albania, leaving these entities operating without clear regulatory oversight. The Permits, Licenses & Authorizations Register (as of September 2023) shows no entries specifically referencing cryptocurrency services. Permits, Licenses & Authorizations Register Albania's Law 66/2020 on Financial Markets Based on Distributed Ledger Technology, in effect since September 2020, regulates digital asset transactions and imposes AML/KYC obligations on crypto service providers, though the 2023 AML guidelines may not contain explicit crypto-specific provisions. There have been no reported enforcement actions specifically targeting cryptocurrency or digital asset activities in Albania, reflecting the current lack of regulatory clarity and enforcement mechanisms. The Albanian Directorate for Combating Organized Crime (as of July 2023) has not issued any statements regarding cryptocurrency-related enforcement. e-licensing Albania Albania's 2023 Income Tax Law (effective from 1 January 2024) specifically classifies income from cryptocurrency transactions as investment income for individuals, subject to a flat rate of 8% (not 10% as ordinary income). No additional targeted tax guidance beyond this statutory provision has been issued by the Albanian tax administration for individuals. As digital asset businesses are not yet regulated in Albania, there are no formal capital or reserve requirements imposed by the Central Bank of Albania. However, prudent market participants may voluntarily maintain sufficient liquidity to cover potential regulatory changes.
tax Treatment: Although there's no specific "crypto capital gains tax" law, virtual assets are generally treated as movable property or financial assets for tax purposes. Therefore, profits derived from the sale or exchange of cryptocurrencies are likely subject to capital gains tax. A taxable event occurs when a cryptocurrency is disposed of, including crypto-to-crypto trades, triggering a 15% capital gains tax. Sold for fiat currency. Exchanged for another cryptocurrency (crypto-to-crypto trades). Exchanged for goods or services. Tax Rate (Individuals): For individuals, capital gains from the sale of shares, financial instruments, and other assets are subject to a 15% flat rate under the Law on Income Tax. It is widely understood that gains from virtual assets would fall under this category. Tax Rate (Businesses): If a business deals with virtual assets, any gains from their disposal would be included in the company's taxable profit and subject to the Corporate Income Tax rate of 15% (or 0% for small businesses meeting specific criteria). Cost Basis: The cost basis of the virtual asset would typically be its acquisition price in Albanian Lek (ALL) at the time of purchase.
travel rule Law No. 66/2020 "On financial markets based on distributed ledger technology" (often referred to as the "Blockchain Law"). This law establishes the legal framework for virtual assets and virtual asset service providers (VASPs). Law No. 9917/2008 "On preventing money laundering and financing of terrorism" (as amended), which is the overarching AML/CFT legislation that VASPs are now obliged to comply with under Law No. 110/2020. Cross-border transfers: The Travel Rule typically applies to transactions exceeding €1,000 / USD 1,000 (or its equivalent in Albanian Lek - ALL). For these transactions, both originator and beneficiary information must be collected and transmitted. FATF’s June 2025 revised standards introduced a $1,000 USD/EUR minimum threshold for domestic transfers under the Travel Rule; transfers below that amount are not subject to mandatory information collection, though jurisdictions may still apply lower thresholds. VASPs in Albania should align with the updated $1,000 threshold, not a zero-threshold assumption for all domestic transfers. Enhanced CDD measures are triggered by risk-based factors (e.g., PEPs, complex structures, high-risk jurisdictions) rather than a fixed €15,000 transaction threshold. Under AMLR 2024/1624, standard CDD applies to occasional transactions of €10,000+, while enhanced measures apply below this threshold when specific ML/FT risks are identified. Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile