Back to Analysis

Edit: Albania

Retail_Trading_Status

Current: Gray-Zone

High Confidence

Comparison Complete

Status & Confidence

Regulatory Status

Confidence Level

Summary Fields

These fields support Markdown formatting. Use the Write/Preview tabs to toggle between editing and rendered view.

**bold** *italic* - list [link](url)

Executive Summary

Key Pillars

Landmark Laws

Considerations

Notes

Detailed Content

Detailed Explanation

Bullet Points

Full Analysis Report

Complete markdown report for this analysis

Albania presents a unique regulatory case where a comprehensive legal framework exists on paper but has failed to materialize in practice, placing the jurisdiction in a 'Gray-Zone.' In May 2020, Parliament passed Law No. 66/2020 'On Financial Markets Based on Distributed Ledger Technology,' which was intended to make Albania a regional pioneer by licensing exchanges and custodians. The law entered into force in September 2020, and the Financial Supervisory Authority (AFSA) approved necessary bylaws in late 2022. However, as of early 2025, reports confirm that not a single entity has been licensed under this regime, rendering the local regulated market non-existent.

Due to the lack of licensed local providers, Albanian retail investors primarily utilize international platforms such as Binance and Kraken. This activity is legally permitted and recognized by the state, evidenced by the inclusion of virtual assets in the tax code. Effective January 1, 2024 (under legislation passed in 2023), income from cryptocurrency trading is classified as investment income and subject to a 15% capital gains tax. This creates a dichotomy where the activity is taxed and legal, but the intended domestic infrastructure for safe trading is absent.

Recognizing the ineffectiveness of the 2020 legislation, Albanian authorities introduced a new draft law in late 2024 titled 'On Crypto-Asset Markets.' This proposed legislation aims to transpose the European Union's Markets in Crypto-Assets (MiCA) regulation into national law. The move is part of Albania's broader effort to align its financial system with EU standards as a candidate country. The new draft seeks to correct the 'loopholes' and overly burdensome requirements of the 2020 law that deterred applicants.

Until the new MiCA-aligned law is enacted and successfully implemented—resulting in actual licensed entities—Albania remains in a regulatory gray area. The legal 'sovereignty' exists, but the operational reality is one of an unregulated market where users depend on offshore entities. Enforcement is currently focused on taxation and AML compliance via the Financial Intelligence Unit, rather than prudential supervision of exchanges.

Change Tracking

Change Justification

Explain why this analysis was changed or reconciled

Previous Status: Allowed-Regulated

Remaining Uncertainties

Enter each uncertainty on a new line

Reviewer Information

Your Name *

This will be recorded for audit purposes

Cancel