Albania
Retail_Trading_Status
Status Changed
Previous status: Gray-Zone
Reconciled from live analysis after human review confirmed status as Allowed-Regulated. Original new analysis incorrectly classified as Gray-Zone due to implementation delays, but the legal framework, taxation, and regulatory oversight confirm a permitted and regulated environment.
- Analysis ID
- #835
- Version
- Latest
- Created
- 2025-12-13 06:01
- Run
- a732fbab...
- History
- View all versions
- Workflow Stage
- Reconciled
Executive Summary
Albania permits and regulates retail cryptocurrency trading under Law No. 66/2020, enacted in 2020, which establishes a legal framework for licensing and oversight by the Financial Supervisory Authority (AMF). As of December 2025, no domestic entities have been licensed, but the framework remains valid. Cryptocurrency trading profits are subject to a 15% capital gains tax under Law No. 8438 amended in 2023. A new MiCA-aligned draft law is under development as of 2024/2025, without altering the current regulated status.
Key Pillars
Primary regulator: Autoriteti i Mbikëqyrjes Financiare (AMF), responsible for licensing and supervision under Law No. 66/2020. Core compliance requirements include licensing, capital adequacy, AML/CFT, and investor protection. Taxation: 15% capital gains tax on crypto profits under Law No. 8438 (2023). Ongoing regulatory development: Draft law 'On Crypto-Asset Markets' (2024/2025) proposed to align with EU MiCA.
Landmark Laws
- Law No. 66/2020 'On Financial Markets Based on Distributed Ledger Technology' (2020-05-21): Establishes licensing framework for crypto exchanges and digital token agents. * Law on Income Tax (Amended) (Law No. 8438, 2023-01-01): Imposes 15% capital gains tax on cryptocurrency trading profits. * Draft Law 'On Crypto-Asset Markets' (2024/2025): Proposed legislation to align with EU MiCA regulation, under development.
Considerations
No domestic cryptocurrency exchanges have been licensed as of December 2025, leading to limited practical opportunities via licensed platforms. Individuals may use international platforms outside AMF jurisdiction. The Bank of Albania issues risk warnings about cryptocurrency volatility but no prohibitions. Active enforcement of 15% capital gains tax on crypto profits. Concerns persist about an unregulated 'black market' for cryptocurrencies involving criminal activities. The AMF has issued warnings against unlicensed platforms, such as in June 2024.
Notes
As of December 2025, the AMF had not licensed any entities to operate as cryptocurrency exchanges or digital token agents, despite the legal framework being in place since 2020. The tax authority enforces a 15% capital gains tax on cryptocurrency profits under the 2023 tax amendments. A new MiCA-aligned draft law is under development, but the existing 2020 framework remains legally valid and enforced.
Remaining Uncertainties
- Timeline for implementation of new MiCA-aligned draft law
- Enforcement mechanisms for 15% tax on foreign platform transactions
- Transition provisions between 2020 law and proposed new legislation
Detailed Explanation
Detailed Explanation
Albania has a legal status of 'Allowed-Regulated' for retail cryptocurrency trading, having established a formal regulatory framework under Law No. 66/2020, enacted on May 21, 2020. This law, titled 'On Financial Markets Based on Distributed Ledger Technology,' provides the legal basis for licensing and oversight of cryptocurrency exchanges and digital token agents, placing regulatory authority with the Financial Supervisory Authority (Autoriteti i Mbikëqyrjes Financiare or AMF). The core regulatory pillars under this framework mandate that entities seeking to operate domestically must obtain a license from the AMF and adhere to requirements concerning capital adequacy, anti-money laundering and counter-terrorist financing (AML/CFT), and investor protection. Despite this framework being legally valid and enforced, a practical limitation exists as, by December 2025, the AMF had not yet licensed any domestic cryptocurrency exchanges or digital token agents, which restricts onshore, regulated trading opportunities for Albanian residents. The taxation regime for cryptocurrency is clearly defined, with trading profits subject to a 15% capital gains tax as per amendments to the Law on Income Tax (Law No. 8438), which came into effect on January 1, 2023, and is actively enforced by the tax authority. While the Bank of Albania has issued public warnings regarding the volatility risks of cryptocurrencies, it has not imposed any prohibitions. The regulatory landscape is in a state of ongoing development, with a new draft law 'On Crypto-Asset Markets' proposed in 2024/2025. This draft law aims to align Albania's regulations with the European Union's Markets in Crypto-Assets (MiCA) regulation but, as of mid-2025, it remains under development and has not altered the current regulated status established by the 2020 law. The AMF maintains an active supervisory role, having issued warnings against unlicensed platforms, such as one in June 2024, and authorities have expressed concerns about criminal activities within the unregulated segment of the market.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated under national law.
* The legal framework is established and enforced, but no domestic entities have been licensed as of December 2025.
II. Key Regulatory Bodies
* Autoriteti i Mbikëqyrjes Financiare (AMF):
* The primary regulator responsible for licensing and supervision of cryptocurrency exchanges and digital token agents under Law No. 66/2020.
* Issues public warnings against unlicensed platforms (e.g., June 2024).
* Bank of Albania:
* Issues risk warnings about cryptocurrency volatility but does not prohibit trading.
III. Important Legislation
* Law No. 66/2020 'On Financial Markets Based on Distributed Ledger Technology' (2020-05-21):
* The foundational law establishing the licensing framework for crypto service providers.
* Law on Income Tax (Amended) (Law No. 8438, 2023-01-01):
* Imposes a 15% capital gains tax on cryptocurrency trading profits.
* Draft Law 'On Crypto-Asset Markets' (2024/2025):
* Proposed legislation under development to align with EU MiCA regulation.
* Does not alter the current regulated status.
IV. Compliance Requirements
* Mandatory licensing from the AMF for entities wishing to operate domestically.
* Adherence to capital adequacy, AML/CFT, and investor protection rules as per Law No. 66/2020.
* Individuals are obligated to declare and pay 15% capital gains tax on cryptocurrency trading profits.
V. Notable Restrictions or Limitations
* No licensed domestic exchanges: As of December 2025, the AMF has not licensed any cryptocurrency exchanges or digital token agents, limiting practical access to regulated onshore platforms.
* Individuals may use international platforms, which operate outside AMF jurisdiction.
* Authorities have expressed concerns about an unregulated 'black market' for cryptocurrencies involving criminal activities.
VI. Recent Developments or Notes
* The tax authority is actively enforcing the 15% capital gains tax on crypto profits.
* The existing 2020 regulatory framework remains legally valid and enforced despite the lack of licensed entities.
* The new MiCA-aligned draft law is a key ongoing regulatory development as of 2024/2025.
Full Analysis Report
Full Analysis Report
Corrected Analysis Record for Retail Cryptocurrency Trading in Albania
Date: 2025-06-30
Status: Allowed-Regulated
Detailed Explanation:
Albania has established a clear regulatory framework for retail cryptocurrency trading through Law No. 66/2020 (2020), which legalizes and regulates activities such as trading and storage, requiring licensing for Virtual Asset Service Providers (VASPs) like exchanges under AMF oversight. Despite no domestic licenses being issued as of December 2025, the law remains in force, and profits from trading are subject to a 15% capital gains tax under Law No. 8438 (2023), enforced by the tax authority. The AMF continues to supervise the market, having issued warnings against unlicensed platforms in June 2024. A new draft law aligning with EU MiCA is under development but does not change the current permitted and regulated status. Individuals are allowed to trade cryptocurrencies, primarily through international platforms, within this regulated environment.
Key Evidence:
- Law No. 66/2020 provides the legal basis for licensing and regulation.
- Law No. 8438 (2023) specifies a 15% tax on crypto profits.
- AMF warnings and regulatory actions confirm ongoing oversight.
- Multiple sources report the framework's validity and tax enforcement.
Sources: See evidence_table for specific citations.
**Corrected Analysis Record for Retail Cryptocurrency Trading in Albania** **Date:** 2025-06-30 **Status:** Allowed-Regulated **Detailed Explanation:** Albania has established a clear regulatory framework for retail cryptocurrency trading through Law No. 66/2020 (2020), which legalizes and regulates activities such as trading and storage, requiring licensing for Virtual Asset Service Providers (VASPs) like exchanges under AMF oversight. Despite no domestic licenses being issued as of December 2025, the law remains in force, and profits from trading are subject to a 15% capital gains tax under Law No. 8438 (2023), enforced by the tax authority. The AMF continues to supervise the market, having issued warnings against unlicensed platforms in June 2024. A new draft law aligning with EU MiCA is under development but does not change the current permitted and regulated status. Individuals are allowed to trade cryptocurrencies, primarily through international platforms, within this regulated environment. **Key Evidence:** - Law No. 66/2020 provides the legal basis for licensing and regulation. - Law No. 8438 (2023) specifies a 15% tax on crypto profits. - AMF warnings and regulatory actions confirm ongoing oversight. - Multiple sources report the framework's validity and tax enforcement. **Sources:** See evidence_table for specific citations.
Source Evidence
Primary and secondary sources cited in this analysis
"The Board of the Financial Supervision Authority (AMF) approved... regulations on the licensing of entities operating as a DLT Exchange."
"Investment income... is taxed at the rate of 15%."
"Although Albania has created a legal framework... in fact to date there is no entity licensed for this purpose."
"Bordi i Autoritetit të Mbikëqyrjes Financiare (AMF) miratoi javën e kaluar 'Për licencimin e subjekteve që ushtrojnë veprimtarinë si Bursë DLT'"
"Në Shqipëri, kriptomonedhat trajtohen si pasuri dhe taksohen sipas dispozitave të përgjithshme të tatimit mbi të ardhurat dhe tatimit mbi fitimet."
"AMF reagon për një nga platformat që operon në Shqipëri: E rrezikshme, nuk e kemi licencuar"
"Ekziston një ligj që është i lejueshëm përdorimi i kriptovalutave që mund të blesh dhe të shesësh, por të gjitha fasilitetet mungojnë."
"Në ligjin e ri për tatimin mbi të ardhurat, përfshihen edhe kriptomonedhat. Përcaktuar si 'të ardhura nga mjetet virtuale'"