Albania -- Enforcement Actions Regulatory Overview

Albania's approach to cryptocurrency has primarily involved legislative efforts (Law No. 5/2020 "On Financial Markets Based on Distributed Ledger Technology") and warnings from financial authorities. However, direct enforcement actions against specific cryptocurrency entities operating within Albania by financial regulators (like the Bank of Albania or the Albanian Financial Supervisory Authority - AFSA) leading to fines or closures are not widely reported as "significant" in the last three years. This is partly because the DLT law's implementation, particularly regarding the licensing of crypto exchanges or service providers, has been slow, meaning fewer regulated entities exist for these authorities to fine.

Instead, the most significant "enforcement actions" have typically been criminal investigations related to fraud, money laundering, or international cooperation, where cryptocurrency is often the medium or tool for illicit activity rather than the direct target of a crypto-specific regulatory violation.

The most notable action fitting your criteria within the last three years involves an international case with a significant Albanian component:

1. Arrest and Extradition of Faruk Fatih Özer (Thodex Founder)

This case is the most prominent example of Albanian authorities' involvement in a major cryptocurrency-related criminal enforcement action, although the primary violations and subsequent penalties were adjudicated elsewhere.

• Regulator/Enforcing Body: Albanian State Police, Special Structure Against Corruption and Organized Crime (SPAK) – acting on an international arrest warrant (Red Notice issued by Interpol).
• Entity Targeted: Faruk Fatih Özer, founder and CEO of the Turkish cryptocurrency exchange Thodex.
• Violation Type: International fraud, money laundering (related to the collapse of the Thodex exchange, which defrauded hundreds of thousands of users of an estimated $2 billion). The Albanian action related to his illegal entry and residence, and the execution of the international arrest warrant.
• Penalty Amount (Albania): No specific "penalty amount" was imposed by Albanian authorities on Özer directly for the crypto fraud. The outcome in Albania was his arrest and successful extradition.
• Date:
  • Arrest: August 30, 2022
  • Extradition: April 20, 2023
• Outcome: Faruk Fatih Özer was arrested in Vlora, Albania, following an international manhunt. After a period of legal appeals, he was extradited to Turkey, where he faced trial. In Turkey, he was subsequently sentenced to 11,196 years in prison in September 2023 for aggravated fraud, leading a criminal organization, and money laundering.
• Source URLs:
  • Reuters (Arrest): https://www.reuters.com/markets/currencies/thodex-founder-ozer-arrested-albania-interior-ministry-2022-08-30/
  • Associated Press (Extradition): https://apnews.com/article/cryptocurrency-turkey-thodex-fraud-extradition-albania-e4a070e5b3ee0b853c84d7286d525424
  • CNN (Turkish Sentence): https://edition.cnn.com/2023/09/08/business/thodex-faruk-fatih-ozer-sentenced-turkey-intl-scli/index.html

Context on Albanian Regulatory Landscape:

While Albania has enacted Law No. 5/2020 on DLT-based financial markets, making it one of the first countries to have such a framework, its practical implementation has been slow. The law aims to regulate virtual asset service providers (VASPs) and other DLT-based financial market operators. However, as of mid-2024, there is a lack of publicly available information about licensed entities under this law or specific regulatory enforcement actions (fines, suspensions) by the Bank of Albania or AFSA against such licensed entities. The primary "enforcement" has been in the criminal domain or through public warnings by the Bank of Albania regarding the risks of unregulated cryptocurrencies.

Therefore, the Thodex founder's arrest and extradition remain the most significant and well-documented cryptocurrency-related enforcement action involving Albanian authorities in the last three years.