The Parliament of Albania recently enacted a new crypto law. Albania’s crypto law is quite comprehensive. It covers licensing of crypto businesses, abusive market practices, and the supervising of activities on crypto trading platforms.
Albania’s New Crypto Law
Albania passed its new crypto law on May 21, 2020. Some experts in the crypto world are describing it as the most progressive crypto law in Europe thus far. It received a lot of support in parliament, passing by 888 votes in favor, 16 against, and 3 abstaining.
Albania’s crypto law was introduced in the Committee of Economy in October 2019. Anila Denaj, the Minister of Finance and Economy, presented the draft law before parliament this week. He said that the law would regulate the licensing, supervising of crypto companies, and prevent abusive market activities. Anyone who violates the new law will face severe fines.
Could Albania Become a Leading Crypto Hub in Europe?
With the new law, Albania is now the third nation in Europe to pass a comprehensive crypto law. The other two European nations with comprehensive crypto laws are France, which passed a law in April 2019, and Malta, which passed a crypto law in 2018.
With the new law, Albania could be setting itself up as a crypto hub for European countries that wish to operate within a regulated legal framework. The strategy seems to have worked out quite well for Malta, which is now known as “Blockchain Island” because of the huge number of crypto companies registered on the island.
Most crypto companies usually avoid setting up in jurisdictions where the regulation is unclear. They do so to avoid violating existing laws, which could come with huge fines that force them to shut down their operations. To ensure that more countries create proper regulation for the crypto sector, various associations have been formed across the world to advocate for the creation of these laws.
While progress has been slow, various nations are slowly beginning to realize that the crypto sector is not going away. As a result, some nations are working on proper regulation for the crypto sector.