Romania has developed a bill on electronic forms of money, as local media reported yesterday. Potentially, these rules can affect the cryptocurrency industry. The draft, which was issued by the Romanian Ministry of Finance, states that groups planning to issue electronic money must verify their tax and legal documents. After this, each member of the issuing organization must be approved by the National Bank of Romania (BNR), according to the Business Review.
If approved, the project will make BNR the only regulator controlling such financial products in the country. BNR claims that it will grant permission to those firms that have “a formal framework for managing carefully thought out e-money activities.”
The framework should include a structure with “clearly defined, transparent and agreed lines of responsibility”, effective risk management processes and “adequate internal control mechanisms” for the issuance of such a money forms, according to official representatives of the Central Bank.
The draft resolution also defines electronic money. It explains that the government considers them as “monetary value stored electronically, which is a requirement for the issuer to provide funds for performing payment transactions, and which is accepted by a person who is not an issuer of electronic money”.
Approval of the Central Bank will only be valid for 12 months. If during this period the issuer does not issue electronic money, it will need to get permission again.
It is not yet clear how this law will affect the cryptocurrency industry, since in Romania, cryptocurrencies are not recognized as a means of payment, unlike in Japan. In addition, the country’s authorities also did not formally identify their position with regard to the ICO and it is not known whether these tokens will fall under the requirements of the rules on electronic money.
In the event that the cryptocurrencies in Romania will be classified as electronic money, given the stringent requirements for issuers of tokens, it is unlikely that the country will turn into the center of the cryptocurrency industry in Europe and take the palm of priority from the Swiss Zug and behind him on the heels of Malta. Source: bits.media