Romania is on the verge of becoming the latest country to regulate electronic money. Although the new guidelines do not make mention of cryptocurrencies specifically, it is evident that any developments will affect that industry as well.
Romania’s Electronic Money Ordinance
Romania’s Ministry of Finance has just introduced an emergency decree to regulate electronic money within the country and moving forward, the Romanian National Bank will be the primary source for all new currencies in this regard– for rather obvious reasons.
More specifically, it appears there will be a requirement to obtain legal permission for the issuance of electronic money. How that process will work exactly, remains rather unclear at this stage. Electronic currencies will only be considered legal if they are issued by credit institutions, the European Central bank, and other EU member states’ central banks. This can have some interesting repercussions on the cryptocurrency industry moving forward.
The Nitty Gritty of the Matter
Any institution in Romania interested in launching its own electronic currency needs to apply to the Romanian National Bank. Every submission will be reviewed by the bank during a three-month period. As part of the investigation, the Romanian Central Bank will ensure that the applying organization has the necessary management structure and effective procedures to identify any risks which may occur in the future.
As one would come to expect, there are other minimum requirements to keep in mind. Institutions need at least 350,000 euro in share capital to launch an electronic currency. That limit, however, is not as steep as some experts had expected at first, although it is still quite high for smaller entities. No company can introduce a new electronic currency without having its legal and tax records audited by official authorities. All of these requirements make a lot of sense on paper and should not cause any major disruptions.
For the time being, it appears as though the Romanian government has an open-mind towards Bitcoin and other cryptocurrencies, but a lack of official guidelines regarding the matter still leave plenty of room for debate and discussions.
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