Quick Answer
Yes, cryptocurrency is legal and regulated in Albania.
- It is governed by the 2020 “DLT-based Financial Markets” law.
- Businesses need licenses and must follow AML/CFT compliance rules.
Legal Status of Crypto in Albania
Cryptocurrency in Albania occupies a legal gray area; while a formal framework exists, its practical application is still evolving. The country passed the “On financial markets based on distributed ledger technology” law in 2020, which legalized and established a regulatory structure for digital assets. However, the market remains in its infancy, with a lack of licensed providers and necessary infrastructure creating uncertainty for users and businesses. Regulatory bodies like the Financial Supervisory Authority oversee the sector, which is subject to strict anti-money laundering regulations to ensure compliance.
Current Regulations
The cornerstone of Albania's crypto regulation is Law no. 66/2020, the “DLT-based Financial Markets” law, which became effective on September 1, 2020. This legislation provides a comprehensive framework for the issuance, trading, and storage of virtual currencies and digital tokens. Under this law, businesses must obtain specific licenses for activities like operating a DLT exchange or providing custodian wallet services, with oversight from the Financial Supervisory Authority and the National Agency for Information Society. Furthermore, the regulations integrate strict anti-money laundering (AML) rules, bringing virtual asset service providers under the purview of the country's financial crime prevention laws.
Regulatory Authorities
Several regulatory bodies in Albania share the responsibility of overseeing the country's cryptocurrency market.
- Financial Supervisory Authority (FSA): The FSA is a primary regulator responsible for licensing and supervising crypto businesses, including exchanges and wallet providers, to ensure they comply with anti-money laundering (AML) laws. It also focuses on investor protection and maintaining the integrity of the digital asset market.
- National Agency for Information Society (AKSHI): AKSHI works with the FSA to issue licenses for DLT exchanges and custodian wallet providers. Its main role is to oversee the technological aspects of the market, such as certifying system auditors and enforcing cybersecurity measures.
- Bank of Albania: While not a direct crypto regulator, the Bank of Albania focuses on overall financial stability and has issued warnings about the risks of digital assets. It works with other authorities to mitigate any systemic risks that cryptocurrencies might pose to the broader financial system.
- Financial Intelligence Unit of Albania (FIU-Albania): The FIU is the central authority for supervising anti-money laundering and countering the financing of terrorism (AML/CFT) activities. It receives and analyzes suspicious transaction reports from all entities, including those dealing with virtual assets.
- Albanian Tax Authority: This authority is responsible for enforcing tax laws related to cryptocurrency activities. It ensures that individuals and businesses correctly report and pay taxes on income and capital gains from crypto.
Historical Context
Albania’s crypto regulation journey began with caution. Before 2020, the Bank of Albania simply issued public warnings about the risks, as no legal framework existed. A major policy shift occurred on May 21, 2020, with the passage of the “DLT-based Financial Markets” law, which established a comprehensive licensing and supervisory regime that took effect that September. While this legitimized the sector, the local market remains undeveloped, with no licensed providers. However, investments in foreign crypto markets are expanding. Further formalizing the space, a new income tax law took effect on January 1, 2024, making crypto-related income taxable.
Compliance Requirements for Businesses in Albania
Businesses in Albania, including those handling virtual assets, must follow strict compliance rules rooted in laws like Law No. 9917 and the Bank of Albania's Regulation 44. These regulations mandate a comprehensive approach to preventing financial crime.
- AML Checks: Firms are required to conduct robust customer due diligence (CDD). This includes identifying and verifying customer identities, especially for transactions exceeding certain thresholds, such as 1,000,000 Lek. Regardless of the transaction amount, due diligence is mandatory in any case of suspected money laundering. The process also involves ongoing monitoring of business relationships and applying enhanced scrutiny for high-risk clients, like politically exposed persons (PEPs).
- KYC Requirements: The Know Your Customer (KYC) process involves collecting and verifying specific data. For individuals, this means gathering their name, date and place of birth, residence, and employment details. For businesses, it includes official registration information, taxpayer identification numbers, and details of legal representatives. All identification documents must be genuine, and firms are required to keep copies.
- Other Mandatory Procedures: Beyond initial checks, businesses must adhere to several other rules. This includes diligent record-keeping of all customer data and transaction histories. Any suspicious activity must be reported to the Financial Intelligence Unit of Albania (FIU-Albania). Furthermore, companies are forbidden from maintaining anonymous accounts and must terminate relationships if they cannot complete the required due diligence.
Why this matters for Cross-Border Payments
For businesses facilitating cross-border payments between Albania and countries like India, these stringent regulations introduce significant operational friction. The rigorous AML and KYC requirements mean that every transaction is subject to intense scrutiny, potentially delaying payments and increasing compliance costs. This can create a major pain point for companies accustomed to the speed of digital assets, as they must now navigate Albania's detailed reporting and record-keeping mandates to avoid penalties or frozen funds.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides access to its Money Grid, a global payments network powered by Bitcoin, through two core products. Lightspark Connect offers native Bitcoin access, while Grid Switch uses domestic real-time payment systems. This dual infrastructure enables businesses to execute instant, low-cost cross-border payments, directly addressing the pain points of speed and high fees associated with traditional financial systems.
To help regulated institutions navigate complex rules like Albania's, Lightspark provides tools that facilitate compliance. Features such as audit-ready reporting, flexible custody options, and built-in screening capabilities empower businesses to meet their regulatory obligations. Grid Switch allows regulated entities to add new payment corridors without needing new licenses, while Connect offers enterprise-grade security. This infrastructure helps institutions adopt crypto-native payments while maintaining their compliance posture.
To learn more about how Lightspark is building the future of open and instant financial infrastructure, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- “Albania Cryptocurrency | Blockchain - Cryptocurrency Regulations.” Freeman Law, freemanlaw.com/cryptocurrency/albania/.
- AML Watcher. “AML/CFT Compliance Guidelines for Albania.” AML Watcher, amlwatcher.com/our-coverage/albania/.
- Bank of Albania. ‘Regulation no 44 “On prevention of money laundering and terrorism financing”.’ Bank of Albania, 24 Dec. 2019, www.bankofalbania.org/About_the_Bank/Legislation/Regulation_no_44_On_prevention_of_money_laundering_and_terrorism_financing.html.
- Beaumont Capital Markets. “Albania's Crypto Tax Guide for Expats and Digital Nomads.” Beaumont Capital Markets, 25 June 2025, beaumont-capitalmarkets.co.uk/albania-crypto-tax-guide-expats-digital-nomads/.
- Myftari, Oltion, and Ermal Mema. “DLT and cryptocurrencies.” Multilaw Global FinTech Guide, Multilaw, multilaw.com/Multilaw/ZENTSO/BusinessGuides/Presentation/Section_Home.aspx?GuideId=2&GuideCountry=Albania&GuideSection=161.
- Si, Nen. “Cryptocurrencies in Albania, how the law works and what are the advantages.” Euronews Albania, 22 Jan. 2025, euronews.al/en/cryptocurrencies-in-albania-how-the-law-works-and-what-are-the-advantages/.
- Vaso, Irv. “Cryptocurrencies in Albania and Kosovo.” KALO & ASSOCIATES, 6 July 2018, www.kalo-attorneys.com/wp-content/uploads/2018/07/Cryptocurrencies-in-Albania-and-Kosovo.pdf.
