Romania Moves Towards Authorising Cryptocurrency Exchanges And Digital Wallet Providers

• Law Firm: Schoenherr Attorneys at Law
• Subject Matter: Finance and Banking, Technology, Financial Services, Fin Tech
• Author: Ms Veronica Alexeev and Silviu-Ioan Lazăr
• Published date: 20 June 2023

Cryptocurrency, fiat currency exchange services and digital wallet providers could soon become authorised in Romania. This comes on the heels of the Ministry of Finance publishing a draft government decision that seeks to create the legal framework for the authorisation and operation of these service providers.

With adoption expected as early as October 2020, the new legislative instrument is crucial, given that legal entities (whether Romanian or foreign) providing exchange services between cryptocurrencies, fiat currencies and digital wallets in Romania are currently operating in a state of uncertainty.

Moreover, this new legislative framework will allow authorities with supervisory powers to intervene and thus create additional protection for Romanian consumers using these services.

Who will be impacted by the new provisions?

Based on the government decision, Romanian legal entities providing cryptocurrency and fiat currency exchange services or offering digital wallets to customers will be able to obtain the necessary authorisation to operate in these areas. For foreign legal entities authorised in another Member State who intend to provide such services in Romania, the draft provides a simplified registration procedure, based in part on the authorisation already obtained in the home state.

All persons concerned will have a 12-month period following the entry into force of the government decision to obtain the authorisation issued by the Foreign Exchange Licensing Commission of the Ministry of Finance (the "Commission").

Conditions for authorisation and validity

Romanian legal entities will be required to have as their object of activity CAEN code 6499 - Other financial intermediation and to obtain technical approval issued by the Authority for the Digitalisation of Romania for the digital platform used. The people in charge of these companies will need to have the necessary knowledge about the prevention of money laundering and...