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Published date15 September 2021
Subject MatterTechnology, Marketing, Media
Law FirmKalo & Associates
AuthorKalo & Associates

I. Innovative Technology Arrangements

Innovative Technology Arrangements are considered the software and architectures which are used in designing and delivering Distributed Ledger Technology (DLT), subject to specified conditions, including the use of distributed, decentralized, shared and, or replicated ledger; being permissioned or permissionless or hybrids thereof; protection with cryptography; and auditability. A very important part therein are also the smart contracts and related applications, including decentralized autonomous organizations, as well as other similar arrangements; and any other Innovative Technology Arrangement that may be designed in the future. The general requirements of an Innovative Technology Arrangement are intended to meet the standards of legality, integrity, transparency, compliance and accountability.

According to the Law no.66/2020, dated 21.5.2020 "On Financial Markets Based on the Technology of Distributed Ledgers" (the "Albanian DLT Law" or simply the "Law"), innovative technology agreements are smart contracts and any software used to design, program and implement services based on DLT. Furthermore, the Law is defining smart contracts is a technological agreement, essentially dependent on or linked to a DLT, containing a set of rules and conditions, which set in motion predetermined reactions, and which are automatically implemented in case of fulfillment of the conditions set out in it.

In order for innovative technology agreements to be valid, a certification process must be followed. The requesting entity, for obtaining a certificate of innovative technology agreement, must:

  • exercise its activity with honesty and integrity, paying due attention to the interests and needs of each of its users;
  • exercise its activity with the necessary ability, care and vigilance, treating its users in a fair, clean and honest manner;
  • maintain the level of security and access protocols of its system to the highest appropriate standards;
  • establish, by itself or through a third party, systems for the prevention, detection, elimination and identification of financial crime risks, as well as money laundering and terrorist financing;
  • have sufficient financial resources.

The evaluation of the above criteria is performed by the provider of innovative services, who must submit to the Albanian National Agency of ICT (AKSHI) and attach to the application for certification a self-declaration regarding the fulfillment of these criteria by the...

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