Kosovo Enhances Crypto Crime Tracing with Council of Europe Workshop

Kosovo is making strides in enhancing financial literacy in cryptocurrency as local finance leaders participate in a multiday workshop focused on digital currencies and the challenges associated with them. From September 24 to September 26, Kosovo’s Financial Intelligence Unit (FIU) leaders are collaborating with the CYBERKOP Action of the Octopus Project, an initiative from the Council of Europe, to conduct a workshop on cryptocurrencies.

The workshops aim to bring together financial intelligence experts, law enforcement officials, prosecutors, and the Central Bank of Kosovo to strengthen local skills and knowledge on digital currencies and Virtual Asset Service Providers (VASPs). One of the primary goals of the workshop is to equip these institutions with better tools for tracing and confiscating illicit digital currency transactions.

The FIU, as one of the key financial departments within the Kosovar government, plays a crucial role in maintaining electronic communication with financial institutions and government agencies. The workshop also seeks to deepen the understanding of existing legal frameworks surrounding digital currencies and licensing aspects, as well as cover components related to operations and investigations.

Furthermore, the sessions aim to provide local Kosovar financial leaders with the necessary skills to seize virtual assets and handle criminal cases involving cryptocurrencies, based on the Council of Europe’s guide on seizing cryptocurrencies. Despite facing disputes over its legitimacy as a nation, Kosovo receives ongoing support from the European Union and the United States, both of which actively monitor and regulate the crypto industry in their respective regions.

The European Union, in particular, has been at the forefront of passing and implementing regulatory measures to govern the crypto space. The Markets in Crypto-Assets Regulation (MiCA) came into effect in June 2023, with EU member states having until 2026 to prepare local businesses and institutions to comply with MiCA laws. Member states like Ireland and Spain have been proactive in developing strategies to prepare digital asset firms within their jurisdictions for the future.

Overall, the workshop organized by Kosovo’s FIU in collaboration with the Council of Europe signifies a significant step towards enhancing crypto crime tracing and strengthening the regulatory framework surrounding digital currencies in the region. By equipping local financial leaders with the necessary skills and knowledge, Kosovo is positioning itself to navigate the complexities of the crypto industry effectively.