Albanian authorities have reportedly decided to apply taxes on income generated from cryptocurrency trading. The legislation is supposed to come into force from the beginning of 2023.
Albania’s crypto environment
In 2020, the Balkan country signaled its intentions to regulate the local cryptocurrency sector by passing a law titled “Financial Markets Based on Distributed Ledger Technology”. The legislation sparked significant controversy as some welcomed it, while others doubted that Albania had the expertise to enforce such a comprehensive regulatory framework on digital assets.
Additionally, the nation is known as one of the major players in the global cocaine market, and many experts have warned that criminals may use cryptocurrencies to launder profits from these illicit activities. Last year’s MONEYVAL report confirmed these concerns:
“The next follow-up report for Albania concluded that this country has not significantly improved its anti-money laundering and counter-terrorist financing measures in line with FATF recommendations. Among other issues, the report examined new international standards applied to virtual assets, including cryptocurrencies and the providers of these assets.
According to recent coverage, Albanian authorities have once again tackled the cryptocurrency industry, intending to impose taxes on people who generate income by dealing with the asset class. Profits from business activities will be taxed at the corporate rate, while investors will be required to donate 15% of their annual income to the government.
Nevertheless, the legislation will not refer to digital currencies issued or guaranteed by central banks such as the Chinese e-CNY and the Nigerian eNaira. Albania has not yet deployed its CBDC.
The upcoming law also focuses on crypto mining. Officials noted that the sector had been something of a gray area for the past few years, but recently it has become an intriguing niche where many individuals are investing their wealth and racking up huge gains. At the moment, it is still not known whether the Albanian authorities will also apply taxes to minors.
Crypto taxes around the world
Some countries, including Germany and India, have already implemented cryptocurrency tax policies. It should be noted, however, that Europe’s largest economy made some changes last month. The German Ministry of Finance revealed that the sale of bitcoin and acquired ether will not be taxed if individuals hold the coins for more than a year.
Portugal has also considered applying taxes on digital asset gains. A few weeks ago, national authorities rejected two separate legislative proposals focusing on the issue, and for now, crypto trading remains untaxed.
Australia is another example where such legislation is in the works. The Australian Taxation Office (ATO) has highlighted taxing profits from cryptocurrency trading as one of the authorities’ main goals for 2022.
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Albania To Start Taxing Crypto Profits From Next Year (Report)
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