Albania is considering the possibility of creating crypto-friendly regulations in a bid to become a regional hub for firms looking to operate in the industry. It wants to follow in the footsteps of Malta to help revitalize its flagging economy. Albania is not known for adopting new technology very quickly, but if it manages to implement blockchain regulations it could turn its fortunes around. Earlier in the year the nation issued warnings about the dangers of cryptocurrencies and urged its citizens to steer clear of them, but it appears to have changed its stance in recent months.
Looking to Follow Malta
Albania is looking to crypto pioneers for some sort of guidance, as such it is taking a special interest in Malta. Malta touts itself as the blockchain island and claims to be the first regulated crypto economy in the world. While the claim is slightly untrue – Gibraltar launched crypto-friendly regulations back in January 2018 – Malta is certainly doing its best. Vanuatu has already asked Malta for help with creating crypto-friendly regulations, and Albania would do well to ask for the same level of help in order to fast track the regulation process.
Being First Has Its Advantages… and Disadvantages
In its quest to be one of the first, Albania is hoping to capitalize on the ability to make up its own regulations. Seeing as many nations have yet to create regulations, being one of the first to the party will benefit it in the sense that nobody can criticize what it is doing. However, the first nations to implement regulations are the Guinea pigs of the world. Other nations will certainly be watching to see what goes well and what goes horribly wrong. These nations will be under the microscope and every turn will be scrutinized by the international crypto community. For these reasons, being the first is a huge honor, but it’s also a very scary test for anyone looking to create what will effectively be seen as a blueprint for other nations to follow.
Malta Starting to Teeter
Albania needs to be cautious when it reaches out for help with crypto regulations, while it also needs to be wary of who it chooses to emulate. Malta looks like it is rocking right now – and not in a good way – as organizations start to adjust from paper-based systems to high-tech blockchain. This is causing a number of teething issues and is giving the illusion that the blockchain island plans might be stalling. In addition to this, companies looking to capitalize on the country’s reputation are making a total mess of it. Remax falsely advertised a 42-story crypto tower in the heart of St Julian’s that it later admitted to being a lie. Should Albania want to succeed, it needs to take note of Malta’s shortcomings and avoid making the same mistakes.
If Albania decides to make the gargantuan move to regulate the blockchain and crypto industry, it could help revitalize its economy and put it on the map as an emerging technology powerhouse.