Additional Piece: Montenegro’s Crypto Dreams and Reality
Recently, Montenegro has been touted as a potential hub for the growing crypto industry. The country’s government has made efforts to brand itself as crypto-friendly and attract crypto investment, with one of the biggest names in crypto, Ethereum co-founder Vitalik Buterin, even being granted citizenship. However, the reality of Montenegro’s political environment may not be as conducive to crypto development as some would hope.
Organized crime has long been a significant issue in Montenegro, with powerful figures linked to various criminal enterprises and involved in political corruption to protect their activities. The country’s burgeoning crypto scene has sparked concerns that crypto could provide an ideal vehicle for illicit activities such as money laundering, tax evasion, and financing terrorism.
The recent arrest of Do Kwon in Montenegro has further highlighted the potential for exploitation of the country’s crypto industry for illicit purposes. Kwon, the co-founder of the failed stablecoin project Terra, was apprehended in Montenegro after being on the run using a fake passport. Allegations have emerged that Kwon helped to fund Montenegro’s Europe Now political party, which co-founder Milojko Spajic is running with in the upcoming parliamentary elections.
Spajic’s party has been accused of being involved in illicit activities, and his association with Kwon has raised concerns about the party’s potential links to organized crime. The outcome of the upcoming elections could have a significant impact on Montenegro’s crypto industry and its reputation as a crypto hub. If Spajic’s party comes to power, it could further blur the lines between crypto investment and illicit activities, complicating Montenegro’s crypto regulatory framework and potentially damaging its reputation further.
In the face of these challenges, it is essential for Montenegro’s government to develop strong regulatory frameworks that can prevent crypto from being used for illicit activities effectively. The country must also address issues of corruption and organized crime to help ensure that its crypto industry develops for legitimate purposes.
Despite these challenges, Montenegro’s potential as a hub for the crypto industry remains significant. The country’s small size, favourable tax laws, and growing tech scene present numerous opportunities for crypto investment and development. The key will be striking a balance between promoting the legitimate use of crypto technology and preventing its exploitation for criminal purposes.
Summary:
Do Kwon, the co-founder of the failed stablecoin project Terra, was arrested in Montenegro in March after being on the run using a fake passport. Allegations have emerged that Kwon helped to fund Montenegro’s Europe Now political party, which co-founder Milojko Spajic is running with in the upcoming parliamentary elections. The outcome of the elections could have a significant impact on Montenegro’s reputation as a crypto hub. The country must develop strong regulatory frameworks that can prevent crypto from being used for illicit activities effectively. Despite these challenges, Montenegro’s potential as a hub for the crypto industry remains significant.
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Do Kwon, the scammer behind the failed stablecoin project Terra, got arrested March. Kwan, a Korean national studying at Stanford and operating out of Singapore, was on the run, using a fake Costa Rican passport in hopes of getting to Dubai. But when law enforcement finally caught up with him, they did caught the crypto baron in the most unlikely place: the tiny Balkan country of Montenegro.
The news confused many crypto watchers as Montenegro is not a stop on the conference-heavy blockchain circuit and few would be able to identify the coastal state – which lies north of Albania – on a map. But those familiar with the country’s political affairs would have been no less surprised to find out that Do Kwon had chosen the Adriatic town as his hideout.
In recent years, influential figures in the country have long been known as Mecca for organized crime – have shown a keen interest in digital currencies and attempted to brand themselves as a crypto-friendly venue. These efforts have already borne some fruit.
Most notably, Montenegro awarded citizenship to Vitalik Buterin, the Russian co-founder of Ethereum placed for a photo with his passport. The then government finance minister, Milojko “Mickey” Spajic, took credit for the photo op.
Accordingly According to news reports at the time, Spajic had invited a group of global crypto experts to visit Montenegro, believing that they could help develop the country’s economy by attracting investment and creating new, well-paying jobs. But this month new reports assert that Kwon – who has been in the Balkans for months – had helped fund the Europe Now political party, which Spajic co-founded.
The Montenegrin government has publicly stated that Kwon, who is currently under house arrest, has ties to Spajic. It cited a letter from Kwon to outgoing Prime Minister Dritan Abazovic, in which he claimed the two were business partners and that he had donated money to Europe Now’s 2022 local election campaign and the presidential election campaign earlier this year, in which the party’s nominee left emerge as the winner.
The allegations have created a political bombshell as parliamentary elections are held in Montenegro this Sunday. Spajic is running in that election and was one of the favorites to become the country’s new prime minister until Tuesday. His opponents have called on the Special Prosecutor’s Office to investigate whether the allegations set out in the letter are true. On June 7th the Europe Now Party pushed backon the grounds that the allegations that the party and Spajic associate with Kwon are merely political slanders.
The truth remains unclear, but it’s hard not to be suspicious of Kwon’s activities in Montenegro. The small coastal state of just 600,000 people is known as the Beehive the drug And cigarette trade, and there is a history of corrupt politicians using their influence to help gangs evade prosecution in exchange for bribes and other favors. An example of this is the former mayor of the city of Budva, Milo Bozovic, who was recently arrested on suspicion of drug trafficking and other crimes.
Spajic claims that crypto can help develop Montenegro’s economy, but that’s a more cynical assumption for those of the country growing enthusiasm For crypto, the sector that would benefit most from the new industry is organized crime.
All of this raises the stakes for Sunday’s election. After winning the presidential election in March, Europe Now found itself in the best position to enter the country’s parliament as the largest party. Should that happen, as party leader, Spajic would be one of the main contenders for the post of prime minister, the most powerful role in the country’s political system.
This is certainly his goal, and if he succeeds in that, the tech-savvy 35-year-old could claim the title as one of the world’s first crypto premier. But whether this is a good thing for Montenegro, the digital currency market and Do Kwon is unknown.
Djukanovic’s main opponents in Sunday’s election are Andrija Mandic of the Democratic Front, who wants closer ties with neighboring countries Serbia and Russia, and – allied with Spajic – Jakov Milatovic, a pro-Western economist and deputy head of Europe Now.
Accordingly ReutersHis opponents say Djukanovic and his party are corrupt and linked to organized crime, and that they have run the country of just 620,000 people as their personal fiefdom – allegations that Djukanovic and his party deny.
https://fortune.com/crypto/2023/06/10/do-kwon-montenegro-spajic/
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