If the new income tax bill proposed by the Albanian Government scales through, investors will begin to pay tax on income made from cryptocurrency assets by next year.
This regulation would cover all income gotten from virtual assets.
All earnings made through these assets would be listed by the state as corporate income if gotten through a business transaction.
Private individuals would be required to pay a 15 percent capital gain tax.
Albania is among the countries that allow cryptocurrency trading platforms to operate in the country.
The Government has however announced plans to bring in regulations for the industry.
The Albanian Crypto Situation
A report by Beincrypto ranked Albania as the third least cryptocurrency-friendly country in Europe.
In early June, the Albanian parliamentary assembly had asked the Financial Supervisory Authority (AFSA) to improve the regulations guiding the cryptocurrency industry in the country.
The assembly had also tasked the agency to cooperate with international regulatory agencies to better understand the industry.
The parliament’s resolution was hinged on plans by the Albanian government to adopt cryptocurrency, based on observed benefits.
In 2020, the Albanian government had passed the “Financial markets based on distributed ledger technology” law, the first among policies on Cryptocurrency in the country.
The law, although still unimplemented sought to position the country to benefit from the cryptocurrency industry.
It also took into cognizance, the risks and potentials of the industry.
The law had addressed issues around licensing, monitoring of players in the industry as well as issues of crimes and sanctions.
Similarly, the Albanian government had since legislated cryptocurrency mining, making it compulsory for miners to obtain licenses from the government.