A new report from the Global Initiative Against Transnational Organized Crime (GI-TOC) has raised alarm bells: cryptocurrency is playing an increasingly significant role in criminal activities in the Western Balkan region, which includes Albania, Serbia, Bosnia & Herzegovina, Kosovo, Montenegro, and North Macedonia.
Balkan criminals are 'hiding' in crypto wallets
According to GI-TOC, tens of millions of euros related to criminal networks in the region have been funneled through crypto wallets and then laundered and reinvested into legitimate businesses. Alarmingly, this region has only recorded three cryptocurrency asset seizures, all occurring in recent years.
Mr. Sasa Djordjevic – senior expert at GI-TOC – stated that drug trafficking groups in Albania and Serbia are using crypto to conceal profits, and these suspicious transactions often mimic cocaine smuggling routes from Latin America to Europe.
Legal and technological loopholes allow crime to 'encroach'
GI-TOC observes: the development of illegal activities runs parallel to the legal use of cryptocurrency in the Balkans, where estimated transaction volumes reach up to 25–30 billion USD. However, the governments in this region are still struggling to keep pace with high-tech crime:
Only 3 out of 6 countries (#Albania , #Serbia , and #Kosovo ) have enacted laws on digital assets.
Among them, Kosovo has not fully implemented enforcement due to a lack of subsidiary regulations.
Montenegro is seen as the 'European choke point' in the crypto black market, which was previously linked to the Hydra market before it was shut down in 2022.
A typical breakthrough: 10 million USD in crypto seized
In the largest recent operation (from November 2024 to January 2025), agencies from Albania, Belgium, the Netherlands, Spain, and Europol seized assets from an Albanian gang, including cash, bank accounts, and cold wallets containing up to 10 million USD in cryptocurrency. Nevertheless, this still represents only a small number of successful cases in seizing illegal digital assets.
Crypto and the conundrum for Balkan governments
GI-TOC warns that without a solid legal framework and advanced tracing technology, the Balkan region will continue to be a hotspot for crypto-related criminal activities. They propose:
Implementing FATF recommendations and the EU's MiCA regulations.
Increase investment in modern blockchain tools and in-depth training for law enforcement.
Tighten cooperation with Europol, Interpol, and international agencies to monitor and address cross-border illegal transactions.
Contact with the crypto market and Binance users
Although the aforementioned illegal activities represent only a small part of the crypto ecosystem, they can affect the image and reliability of the global cryptocurrency market, particularly in developing regions. Binance users and other legitimate platforms should be aware that investing in unverified tokens or trading through unverified wallets can inadvertently facilitate illegal money flows.
⚠️ Risk warning: Investing in cryptocurrency always carries high risks due to strong price volatility and the potential for involvement in illegal activities. Users need to be cautious, comply with the law, and avoid using or storing digital assets through unverified platforms. Crypto is not suitable for everyone.