Albania is moving toward a more comprehensive regulatory framework for cryptocurrencies and other digital assets after the Council of Ministers approved the draft law “On Crypto-Asset Markets”, prepared by the Financial Supervisory Authority (AMF).
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At the center of the reform is the EU's Markets in Crypto-Assets Regulation (MiCA), Regulation (EU) 2023/1114, which introduced a comprehensive framework for crypto-asset issuers and service providers across the European Union. The Albanian financial regulator identifies MiCA as one of the key European regulatory developments in the sector.
What would the new framework regulate?
The draft law is expected to establish requirements covering several areas of the crypto-asset market, including:
- the issuance of crypto-assets;
- crypto-asset trading platforms;
- custody and exchange services;
- authorization and supervision of service providers;
- corporate governance and capital requirements;
- conflicts of interest;
- cybersecurity;
- market-abuse prevention;
- and measures against money laundering.
The proposed framework would also distinguish between different categories of crypto-assets according to their characteristics and associated risks.
One of its stated objectives is to increase transparency and investor protection while establishing clearer obligations for businesses operating in the sector.
Albania already has crypto regulation
The new legislation would not represent Albania's first attempt to regulate digital assets.
The country already has Law No. 66/2020 “On Financial Markets Based on Distributed Ledger Technology,” which entered into force in September 2020. That law established rules concerning the issuance of digital tokens and virtual currencies, as well as licensing, monitoring and supervision of entities involved in their distribution, trading and custody.
AMF currently describes the existing framework as covering licensing and supervision of several activities involving digital tokens and virtual currencies.
The new initiative therefore represents an attempt to modernize and expand the existing framework, rather than introducing regulation of crypto-assets in Albania for the first time.
Why MiCA matters
MiCA is significant because it creates a harmonized regulatory framework for crypto-assets across the EU, with requirements for issuers, service providers and market supervision.
For Albania, aligning its legislation with MiCA could make its regulatory environment more compatible with European financial standards as the country continues its EU integration process.
The reform also comes as Albanian authorities are strengthening their broader financial-sector regulatory framework. In September, AMF reported discussions with the World Bank on regulatory reforms, institutional capacity, risk-based supervision and the preparation of Albanian financial markets for European standards.
Regulation does not eliminate crypto risk
A clearer legal framework can provide greater transparency for companies and investors, but regulation does not make crypto-assets risk-free.
Cryptocurrency markets remain exposed to significant price volatility, technological vulnerabilities, fraud and cybercrime. Stronger rules can establish responsibilities and supervisory mechanisms, but investors still face the possibility of losing money.
The practical effectiveness of Albania's new framework will therefore depend not only on the text of the law, but also on how effectively AMF and other institutions enforce it, supervise licensed operators and respond to violations.
That may ultimately be the more important test of the reform.
For Albania, the challenge is now to move from having rules on paper to building a regulatory environment capable of supervising a rapidly changing digital-asset market while remaining aligned with European standards.