Cryptocurrencies are not real currencies and Montenegro has no regulations suggesting that their providers must register at the Central Bank of Montenegro. Consequently, there’s no a mechanism for monitoring such activities either, Dnevne Novine daily writes.
As a matter of fact, cryptocurrencies are not money. They’re a form of digital currencies, that is, digital asset that might be digitally exchanged, transferred, sold. However, their usage in Montenegro is not regulated by any law and the CBM cannot guarantee for their value.
“There are many controversies regarding cryptocurrencies, their value cannot be predicted and are often used for illegal transactions. The only way to ensure the trust, protection of end users and the financial stability is to have regulations and proper monitoring in place,” the CBM pointed out.
Montenegro has no legal framework defining the issue of digital asset. It means that any individual now can invest, as there are no legal obstacles, but the risk they’re taking is massive.
For that reason, the CBM Financial Stability Council set up a working group for drawing up the law which is to determine digital asset. Members of the group are representatives of the CBM, the Ministry of Finance and Social Welfare, the Ministry of Public Administration, Digital Society and Media and the Ministry of Economic Development, whereas its work is going to be coordinated by the Capital Market Commission. The aim is to find out a comprehensive solution for cryptocurrencies.
