TIRANA, Oct 28 /ATA/ Deputy Minister of Economy and Innovation, Martin Kajo, presented today to the Committee on Europe and Foreign Affairs the draft law “On Markets in Crypto-Assets”, which aims to create a more comprehensive and clear framework for digital finance in Albania, in line with new market developments and European Union standards.
During the presentation, Kajo emphasized that the draft law aims to align Albanian legislation with the European regulation on markets in crypto-assets, known as MiCA, establishing clearer rules for operators and strengthening the protection of investors and clients.
He explained that crypto-assets are digital representations of value or rights that can be electronically stored and transferred using distributed ledger technology like blockchain.
According to Kajo, while Albania established a legal framework for DLT-based financial markets in 2020, the rise of new financial products and services necessitates an update to existing regulations. Accordingly, the draft law also covers asset-referenced tokens (stablecoins) and related services.
The Deputy Minister underlined that the new framework will aim to increase transparency for citizens, enabling them to understand the nature of the products, costs, rights, and associated risks.
The draft law also provides rules for the safekeeping and administration of clients’ assets, the prevention of conflicts of interest, and the handling of complaints.
For crypto-asset service providers, requirements are envisaged regarding capital, governance, system security, and operational oversight. For asset-referenced crypto-assets and those aiming to maintain value through electronic money, the draft law establishes specific requirements depending on their nature and risks, including asset backing, the safeguarding of funds, and redemption rights.
Kajo emphasized that the objective is to ensure that novel financial activities generate economic value within Albania, encouraging the growth of entities and services responsive to market demands. The draft law further incorporates mechanisms designed to identify and remediate technical and regulatory issues at an early stage, prior to the broader dissemination of products and services.
With regard to supervision, the draft law delineates the statutory powers of the competent authorities—specifically the Financial Supervisory Authority (AFSA) and the Bank of Albania—in accordance with the nature of the activity. AFSA is mandated to authorize and supervise crypto-asset service providers and to exercise powers concerning public offerings and associated documentation. The Bank of Albania shall hold regulatory authority over the authorization and oversight of issuers of the relevant categories of crypto-assets.
The proposed act further governs use of inside information as well as market manipulation, granting designated authorities requisite statutory powers for investigation and enforcement. In addition, the legislation lays down provisions for the regulatory recognition of EU-authorized operators pursuant to established supervisory criteria. Aimed at promoting market access and fair competition, such recognition shall be processed through the administrative framework of either AFSA or the Bank of Albania, as applicable.
Kajo urged MPs to view the draft law as an important step toward creating a more transparent, secure, and reliable digital financial market for citizens.
He stressed that its approval will contribute to meeting the requirements of the European integration process in the area of financial services, while establishing clearer conditions for businesses and investors.
The rapporteur for the draft law, MP Sara Mila, welcomed the alignment of the legislation with European Union rules, describing this process as vital within the framework of European integration.
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