Regulation of the digital market and cryptocurrency, in general, is the new trend world over as countries now see it as a norm to regulate the activities of the crypto space.
Romania has now joined the rest of its counterparts like the United States of America and the Philippines, in regulating cryptocurrencies and its dealings in and around the country.
The ministry of finance in Romania has drafted a new set of the emergency ordinance to regulate the new virtual currencies. With the new law, virtual currencies will be under the direct supervision of the Romania National Bank.
The repercussions of this are that it will limit the proliferation of the market, as the bank will surely regulate those with legal approvals and kick out those without the permission.
Under the new set of rules, the draft will set stringent conditions and basic requirements that must be met by issuers of virtual currencies. Which means that apart from being vetted by the legalized body, the National Bank of Romania, an issuer must have at €350,000, worth of capital share.
Business enthusiast opined that the new measures would include a thorough investigation of tax payments records and personal legal records, though the draft refuses to mention the word, cryptocurrency, but uses the term “electronic money.” It went ahead to define cryptocurrencies as a “monetary valued stored electronically, including magnetic representing a claim of the issuer issued on receipt of funds to perform payment transactions and which is accepted by a person, other than the issuer of the electronic money.”
The polarization of the market will not be accepted, as only a particular set of the institution will be allowed to issue electronic money, as most entities allowed are limited to credit institutions like the National Central Banks, European Central Banks and electronic money institutions.
The requirement to be an electronic money issuer is subtle, yet rigid. The entities must create a Framework capable of managing all activities related to the issuance of electronic money before the BNR can approve them.
Limited time is thus available for the approved institutions, as only the grace of 12 months, is accorded to them, in which, if the company involved do not Start operation, the license would be revoked.
Though, one of the dark sides, hovering around the regulation, is the law that states that all the issuance of the money must take place in Romanian territory and anything beyond that would amount to illegality, which will lead to the withdrawal of authorization.
This will surely limit the operators to the local terrain and not operate on a global scale.
The regulation of the activities of cryptocurrency operations is a welcome development, only if, its meant to take out the bad eggs, but not to restrict the activities of the operators.