Albania Set To Charge Tax Rates For Crypto Transactions And Blockchain-based Mining 


Details have emerged that authorities in Albania would soon introduce a new tax policy for the crypto space in the country.

According to available information, the tax bill is currently under consideration by the country’s legislature and would likely take effect by the beginning of next year.

The implication of the new bill is that it would enable the country’s highest regulatory agency to tax crypto holdings and the income derived from virtual assets.

The bill classified virtual assets as

A digital representation of a value that can be deposited, traded or transferred in digital form, and that can be used for payment or investment purposes or as a medium of exchange, including but not limited to cryptocurrencies.

It is important to note this virtual asset does not include central bank digital currencies (CBDCs).

The absence of CBDC on the list of these virtual assets is significant because multiple monetary authorities across the globe are increasingly developing a digital version of their national fiat currency.

Some of these include authorities in the United States, the European Union, China, and the Russian Federation.

Crypto Mining Activities to be Taxed

All forms of income from crypto transactions or mining will be classified as corporate income anytime they are received as a result of business activity.

Crypto mining activities have been classified to be

The activity of using the computer power of system users to solve cryptographic algorithms, to confirm transactions and gain virtual tools in exchange, as well as processing and confirmation activity of transactions through the investment of a virtual tool designated by users of computer nodes participating in this process.

Furthermore, the bill noted that in the event that the beneficiaries are private individuals, they will have to pay a capital gains tax of 15% on the income.