Central Bank of AlbanaCentral Bank of Albania Lists Five Most Important Bitcoin Risks in Public Warningia Lists Five Most Important Bitcoin Risks in a Public Warning

Central Bank of Albania Lists Five Most Important Bitcoin Risks in Public Warning

The central bank of Albania issued a public announcement on Thursday, warning citizens of the risks related to the use of digital currencies such as bitcoin. It includes five of what the bank considers the “most important” risks associated with digital currencies for Albania.

Also read: India’s Supreme Court Seeks Answers as Bitcoin Legalization Focus Turns to Taxation

Bank of Albania’s Warning

The Bank of Albania, which is the Balkan country’s central bank, issued a public notice warning Albanians of the risks related to the use of cryptocurrencies such as bitcoin. The bank wrote:

The Bank of Albania has not licensed any financial entity whose activities include the use of virtual currencies…therefore these activities are not subject to the regulatory and supervisory framework by the Bank of Albania.

Citing how the absence of rules can result in significant risks, uncertainties, and a lack of protection against losses, the bank stated that anyone engaged in this kind of activity does so at their own risk.

This is the first time the Bank of Albania has issued a warning about bitcoin, which still has a very small market in the country with only a handful of Localbitcoin traders. This statement follows an earlier warning by the Albanian Financial Supervisory Authority about the risks of using any unlicensed online trading platforms, Tirana Times detailed. Bitcoin was not mentioned in that previous warning.

Five Top Risks of Digital Currencies

Central Bank of Albania Lists Five Most Important Bitcoin Risks in Public WarningTo raise public awareness of the risks of digital currencies, the Albanian central bank has listed five of what it considers the “most important” risks for Albania in its announcement:

First, the bank noted that the values of digital currencies are “quite unstable,” citing that they “can be manipulated” which could lead to significant losses for investors. In addition, the lack of liquidity could impede the conversion between them and fiat.

Second, digital currency exchanges are unregulated and unregistered, which could also lead to losses.

Third, some of these exchange platforms are “quite vulnerable to cyber attacks,” the bank explained. Investments could be at risk since these attacks can happen at any time and, in many cases, there may be no recovery option.

Central Bank of Albania Lists Five Most Important Bitcoin Risks in Public WarningFourth, “while investments in these currencies are anonymous, they can be used by individuals to enable illegal activities such as money laundering, financing of terrorism or smuggling of illicit goods,” the bank detailed.

Fifth, the bank described that “at the request of the virtual currency scheme, people need to digitize their identification, such as by scanning their passport, retina or fingerprint.” The identification tools they use “are not subject to the laws and regulations for the protection of personal data or safety standards. Consequently, there is no guarantee that these credentials will be administered safely to avoid their theft or misuse.”

The bank then concluded (loosely translated):

For all the above, we appeal to the Albanian public to be prudent and responsible in managing their savings.

What do you think of the Albanian central bank’s warning? Let us know in the comments section below.


Images courtesy of Shutterstock, Central Banking


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  • Rafael Ladeira

    Some banks are so scared.

  • Jean-luc Lejoly

    actually this is a nice warning, way less doomsday than Stanley and morgan or other US entities.

    All it states at the end is not at all threatening, nor is it saying Digital currencies are to be avoided, but actually ALL investment in very speculative values is to be done with prudence.

    The reality is that all the warning could apply just as well to any kind of electronic trading of stocks in the stock market, done via an electronic trading platform. Most security for online trading platforms ‘especialy the well renouned ones’ are a mere joke. and they too ask and badly manage the personal data of the traders.

    I think the way they put it, digital currencies are really at the exact same footing as let’s say penny stocks in their Point of view. Lets face it .. the last overall warning ‘For all the above, we appeal to the Albanian public to be prudent and responsible in managing their savings.’, does apply to trading in any volatile market.

  • Alonna Obika

    A very prudent warning that anyone anywhere should do well to pay attention to.

    • Fred Barnes

      Dumb ass

  • albanx

    There is a specific reason why an Albanian bank issue this warning. In 1996 Albania collapsed to a civil war due to some big ponzi schemes companies promising easy gains. Most of half of the albanian population lost their savings leading the country to a civil war. I lived there during this period and was not nice.

  • NAIJABOY

    for volitility and illegit purposes, i agree but bitcoin, ethereum and a few others are regulated by code. code is law. the bitcoin blockchain is economically unhackable. it is secured by time and things like password theft exist in all forms of digital payments as well. as for protection of personal data, there is no such thing as personal once that content has been uploaded to the internet. just as hackers hack twitter and facebook accounts there always isn’t any gauranty. Best practices should be using 2fa , a strong password and store you cryptos offline. if they are online with a third party make sure u have your private keys.

  • Liberty88

    All of these ‘risks’ can be just as attributable to central bank fiat fraud as well.
    These banks are terrified.