Illicit Trade Risks in Online Gaming: Evidence from Albania and North Macedonia

This research highlights the growing use of online gaming virtual economies in Albania and North Macedonia for illicit financial activities, particularly money laundering through crypto-backed skin exchanges. These virtual marketplaces enable users to trade digital assets, often across borders and with limited transparency, making them attractive channels for disguising the origin of illegal funds. A central issue is the lack of legal recognition and regulation of virtual goods in both countries. Current frameworks do not adequately classify or govern these digital assets, leaving significant gaps in consumer protection and financial oversight. As a result, users are exposed to risks such as fraud and asset loss, while illicit actors can exploit these unregulated environments with minimal accountability. The problem is compounded by systemic loopholes and weak enforcement mechanisms, which contribute to a climate of impunity. These institutional weaknesses allow illicit practices to persist and expand, highlighting the limitations of purely national-level responses. Consequently, the passage emphasises the need for stronger policy integration at regional and European Union levels to ensure consistent regulation, improved monitoring, and more effective enforcement. The use of Artificial Intelligence (AI) is identified as a promising tool for detecting suspicious in-game transactions and identifying patterns of financial misconduct. However, the deployment of AI must be carefully managed. It should be supported by robust ethical frameworks to ensure data privacy, transparency, and responsible use.