Romania is the latest European country to issue regulations for cryptocurrencies. According to Business Review, the Romanian Ministry of Finance has recently published a draft Emergency Ordinance, which is set to regulate the activity of issuing all forms of digital money.
In the draft, electronic money is defined as “monetary value stored electronically, including magnetic, representing a claim on the issuer issued on receipt of funds for the purpose of performing payment transactions and which is accepted by a person other than the issuer of electronic money.”
More to the point, the document states that any legal financial entity looking to issue digital currencies must have its members officially approved by the BNR (Romanian National Bank). Another condition is that the entities in question must have a share capital of no less than $409,000.
The most important details of the draft
The draft also states the specific categories of institutions eligible to issue digital money. These include credit institutions, electron money institutions, the European Central Bank, and the national central banks. The document also states that the National Bank of Romania will be the one responsible for supervising the issuing of electronic assets by issuing the necessary authorizations.
To obtain the authorizations from the BNR, the involved entities should develop a formal framework. The dossier analysis period for the granting of the authorizations is three months. According to the draft, the authorization will be valid for 12 months from the date of issue.
In Romania, the emission of digital money without authorization from the BNR is considered a crime and is punishable with six months to three years in prison. Lastly, the draft covers the conditions and situations when BNR can withdraw the authorizations granted to a provider of electronic money.
These are as follows: the issuer of e-money does not carry out the activity within the country’s borders, the authorization was obtained based on false information, the institution is no longer capable of fulfilling the agreed-upon conditions.
With this latest turn of events, Romania joins the ranks of other European countries that have already laid down the groundwork for regulating the issuance of cryptocurrencies.