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Romania Introduces New Cryptocurrency Regulations

Romania is the latest in a series of countries to introduce and implement new regulations surrounding cryptocurrencies and digital assets. Romania’s Ministry of Finance released a guideline draft detailing the conditions and requirements by any digital currency distributer within its country.


 

New Law

As per the draft, any distributor must possess at least EUR350K and each involved individual must be verified and presented approval by the BNR, Romania’s central bank. The new requirements are placed as a means of handling the known criminal risks attributed to cryptocurrencies in general and full documentation review of every applicant will be conducted by the bank.

Additionally, the draft itself refers to electronic money, as opposed to directly mentioning crypto or digital currencies. Any company or body issuing the e-money will only be able to operate through credit institutions, the ECB or local official authorities. The draft firmly states that for any institution or organization to operate legally, full compliance with Romanian law must be presented. Full application and registration with the BNR are also mandated as the bank will offer the required validation to distribute e-funds.

In addition, the draft also states that each authorized issues will remain valid for one year. Should a company fail to operate and function within the allotted period, it will have its approval shut down. Offshore operations by authorized companies will also have their status nullified if fund allocation occurs elsewhere.

Approval

According to the paper, the BNR will permit these licenses to companies once they’ve displayed proper and full adherence to the requirements and presented a sturdy operational status, compliance will all laws and governance and establishing the proper protocols in terms of risk and threat assessment and response. A mandatory three month waiting period is also presented for each new applicant while regulators assess the application and perform background checks.

As it seems in regards to the new system and regulations, it seems like official authorities are attempting to fully control all currency issuance within Romania through the new guidelines. Any business looking to introduce its services and products to the national market will first apply to the BNR and finance ministry for approval. Should the proposed draft be passed as a bill, the central bank will fully own and operate the entire e-money sector in the country.

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