BIRN: Montenegro as a crypto hub on the darknet

(Birn.me)

Montenegro has become a crypto hub on the darknet, linked to large-scale international fraud, with a medium to high risk of money laundering, according to research by the international NGO Global Initiative to Combat Transnational Organized Crime (GI-TOC).

The research "Closing the Gap: How Montenegro Should Respond to Cryptocrime in 2026", conducted by GI-TOC for BIRN Montenegro, states that until March 2025, Montenegro operated without basic rules for cryptocurrencies.

"In this regulatory vacuum, criminal groups have used cryptocurrencies as a low-barrier channel for money laundering, fast cross-border transfers and converting cash into crypto via unlicensed dealers, making detection, surveillance and asset seizure more difficult. Criminal groups have invested illicit funds in cryptocurrencies and, according to the European Union Drug Agency, Montenegro has emerged as one of the main European hubs for the use of cryptocurrencies on darknet markets," the GI-TOC report states.

Citing data from one of the world's largest online cryptocurrency exchanges, Binance, it is reported that last year there were 17.000 users from Montenegro on the exchange, which is about three percent of the population. International cryptocurrency company Triple-A has determined that in 2023 there were 7.239 users in Montenegro, or 1,16 percent of the population.

It is also stated that in the past four years, around 8,5 million euros have been spent in Montenegro on the purchase of cryptocurrencies using cards issued by domestic banks. The largest number of users of crypto exchanges were from Podgorica, Budva and Bar.

"Much of the exchange of cash for crypto takes place in the grey zone, without oversight, through unregistered dealers, online forums and Telegram groups. Montenegro has also attracted individuals linked to major crypto scams, raising concerns that the country could become a haven for such individuals," the report said.

BIRN's investigation last December showed that the exchange of cryptocurrencies for cash in Montenegro takes place in a gray area, through unregistered dealers, forums and Telegram groups, while multi-million dollar transactions pass without any state oversight.

It was clarified that amendments to the Anti-Money Laundering Law in March 2025 brought cryptocurrencies under regulation and aligned them with international standards, but that a comprehensive law on virtual assets still does not exist.

"Although police are trained in blockchain analysis, Montenegro has not seized virtual assets due to the lack of national crypto wallets and procedures. Effective prosecution requires a shift from donor-funded tools to national resources and improved cooperation between law enforcement agencies," the research states.

It also states that Montenegro should finalize the law on virtual assets during 2026 and proposes consultations with virtual asset service providers from neighboring and partner countries, as well as international organizations. It also explains that the process of working on the law should be open and transparent, and that Montenegro should follow EU practice and adopt the Markets in Crypto-Assets (MiCA) regulatory framework, instead of relying on regulations outside the EU.

"Montenegro currently has no officially registered virtual asset service providers. However, some trading takes place on large exchanges such as Binance and Gate.io, while other cryptocurrency-for-cash transactions take place outside platforms and outside regulatory oversight... Demand comes from both domestic residents and foreigners, especially Russians, Ukrainians and Turks," it states.

"Montenegro is starting the fight against crypto-crime from a weak position: there are no licensed virtual asset service providers, there is a significant off-platform market for exchanging cash for cryptocurrencies, and the legal framework is only partially covered."