Virtual currency poses a threat for Kosovo

Virtual currency poses a threat for Kosovo

Virtual currency has also been spread in Kosovo. This currency, which is called Bitcoin, exists only on the internet and it enables people to make transactions the same way they do with real currencies.

University professor, Muhamer Pajaziti told IBNA that Bitcoin is a type of digital money, which is registering a growing popularity year after year.

According to him, the bad thing about this virtual currency is that no institution controls these transactions.

“This virtual currency is not wide spread in Kosovo, but in all likelihood, it will soon spread in our market too. Currently, there exist several companies which are offering people and businesses the chance to  be involved in commercial schemes which enable the sale of shares through Bitcoin”, Pajaziti says.

He says that the spreading of this currency in the market of Kosovo may have serious consequences on security.

“Given the inefficiency in the functioning of financial institutions in Kosovo, Bitcoin may be used for money laundering and financing of terrorism. Unfortunately, our country may become a safe haven for illegal transactions”, he explains.

Pajaziti says that even EU member countries have not regulated this virtual money as good as they should have.

“The EU doesn’t currently have any legislation on virtual currencies, but this doesn’t mean that this issue is entirely unregulated in the EU. The European Parliament and the European Union Council have proposed  changes in the directive on the prevention of money laundering and financing of terrorism which will require European countries to identify Bitcoin exchanges and users”, Pajaziti says. /