The Central Bank of the Republic of Kosovo (CBK) has adopted Kosovo’s first regulation on licensing crypto-asset service operators, marking a turning point for Kosovo’s financial and technology sectors and bringing Kosovo closer in line with regulatory trends across Europe, particularly the EU’s Markets in Crypto-Assets (MiCA) Regulation.
This regulation provides licensed operators with legal certainty, market credibility and retainer consumer trust, by ensuring compliance requirements, ranging from capital adequacy to anti-money laundering (AML) safeguards.
The framework sets out clear conditions for entering and remaining in the market, including licensing and approval processes for crypto-asset exchange operators, governance and financial requirements for sound management, obligations to safeguard client funds, to act in strict compliance standards on AML and counter-terrorist financing, as well as enforcing corrective measures and penalties for non-compliance.
Regarding the licensing procedures, licensed operators, or operators seeking to become licensed, must adapt to considerable compliance requirements. Companies entering this sector will need to invest in governance structures, risk-management systems and AML/CTF programs that meet CBK standards. Conclusively, the approval of this Regulation is a major step forward for Kosovo’s financial sector, paving the way for the expansion of businesses with a focus on crypto-assets, providing customers greater trust in the market itself.
The information contained in this document does not constitute legal advice on any specific matter and is provided solely for general informational purposes.
