Investment in cryptovaluta carries high risk, Kosovo Central Bank says

Expedia and Microsoft accept some cryptovaluta, for their products and services, in Kosovo are some automotive markets, computer stores and other small businesses that accept digital currency.

In Kosovo, cryptova peace ATMs are already in use. They work like commercial exchange services, they accept cash in exchange for cryptovalus, and krypovaluta in exchange for cash, writes news.net.

Cryptoccy is digital money. It works based on cryptographic algorithms. It has all the characteristics of a real coin, except that the authority of the State is not behind them and that they exist only in electronic form.

According to the Central Bank of Kosovo, cryptovaluts are not registered locally, and if any citizens lose money, no one guarantees their return.

Even this institution does not plan to deal with the actual drafting of any legal framework, which could bring this currency to control in Kosovo.

“The encryption of the crypto currency / virtual money is not regulated by the legal or regulatory framework of the CEC in force. Once you encrypt the currency / virtual money is not regulated, the BQK cannot stop their circulation. Also, BQK through previous publications has presented its position, which is in line with the central banks of other countries, and which continues to be the same, that investment in these currency carries high risk due to the large fluctuations of their market value, so those who invest in these currency must consider that they could suffer loss of invested”, has told news.nets, Abu Ahmeti, BQ spokesman.

Unlike the state of Kosovo, Albania's Assembly on the date of 21.05.2020 has adopted the law “for financial markets based on the technology of distributed registries”, which legitimises cryptomonedat. The law went into effect in September last year.

This law regulates financial markets based on the technology of distributed records. The law regulates the conditions for licensing, monitoring, monitoring of subjects exercising distribution activity, trading and preserving digital land and/or virtual currency, digital land agent, innovative service providers and automatized venture of collective investments.

According to Article 1 of this document, the object of this law is to regulate the release of digital land and/or virtual currency, licensing, monitoring and monitoring of subjects that exercise the activity of distribution, trading and storage of digital lands and/or virtual currency, digital land agent, innovative service providers and automated ventures of collective investments.

It says that it is intended to regulate by law, prohibiting abuse, and taking penalties regarding virtual activities and related services, underlining that regulation is being embraced in many countries as an alternative to control and prosperity.

As far as money laundering is concerned, the bill also addresses issues related to the prevention of money laundering, requiring any title license-making of a safe system and protected from risks to monitor transactions in accordance with the law on preventing money laundering and financing terrorisation, by drafting policies to prevent money laundering and employee engagement with the proper experience for reporting issues related to money laundering.

So far, in Europe only two states have taken steps to implement a specific legislation on virtual activities that are not covered by the existing European Union framework. Thus, Malta has a law on virtual activities in place, France has passed the law in April 2019.

Banks in Kosovo do not accept these coins.

Cryptoccy is in direct possession of the person in question and is not maintained by other banks or providers of financial services. Their owner has access to cryptovalouts using a so-called private “key”, a key reflecting ownership of the right amount of cryptovalut units within the network.

The technological base from which the cryptova peacet is called the chain block. Blockchain is a decentralised network of computers that are interconnected and each saves separate data.

Currently, there are some 2,000 different kinds of coins on the global market. In Kosovo, their large-scale production is already taking place in northern Mitrovica, since currents and equipment for their production are not paid in that section.