Romanian Government Accepts Blockchain

Colin Baseman

Most of the European countries are highly progressive. They are developed and are always prepared to accept novelties. New technologies enter the European Community and people are willing to make use of the latest offers and deals provided by prominent companies and IT specialists.

Romania is one of the countries that is moving forward and seems to be eager to consider blockchain. Officials are currently working on crypto regulations and discussing the advantages of the crypto industry. Many analysts admit that this kind of change can greatly improve the economy of the entire country and help people live a better life.

As we now know, Romania has adopted the first regulation related to virtual currencies. Politicians have also included crypto wallets as well as discussed what sort of platforms will be applied for fiat-crypto exchanges.

According to the latest news reports, the EU and its Central Bank found it necessary to make a unitary legal framework – this, as they believe, will limit the anonymity of crypto transfers. This especially matters when we talk about money laundering and issues related to tax evasion or even terrorist financing.

Officials say that the easiest approach of management in this case would be checking the entire way of fiat currencies. Exchange providers will be responsible for controlling purchases of digital currencies with fiat.

Legal Framework in Europe

At the moment, the European Community cannot boast to have a regulation or definition of digital currencies. They cannot provide any regulations for digital foreign exchange services. Also, officials do not yet know enough about the way in which providers of custody wallets operate.

Nevertheless, they do admit that the crypto industry carries potential risks; hence all financial transactions need to be fully transparent. Romania has already implemented certain measures last summer. Authorities issued a bill that prevents and combats money laundering. The document includes issues related to terrorist financing as well.

On the other hand, the bill omitted several sections of reporting entities in the area of cryptocurrencies. It’s essential to mention that the exchange providers who are responsible for monitoring the purchase of digital currency with fiat currency should obtain authorization as long as they operate in Romania.

New Laws and Definitions

Laws define what electronic money is. They also define virtual currencies and mention that this asset is equal to electronic money. Finally, the documents describe digital wallet providers. Some virtual currencies promise future profits and specialists may say that electronic currencies are different from electronic money. On the other hand, the government is ready to classify them and it will all depend on the model and role that the currency plays in the ecosystem of the platform.

Moreover, authorities realize that there is a difference between various digital wallets. How they perceive them depends on how users access their accounts and how they store their private keys. Hot wallets have permanent and direct access to the World Wide Web along with a special blockchain. At the same time, individuals who provide services between fiat and virtual money must register and authorize. They must obtain all the necessary certification and documentation from the commission.

Newly created laws give more details on how a legal provider can register and familiarize them with the terms and conditions. All European providers must meet certain criteria of a double authorization. Regulators refer participants to the Romanian legislation where they can verify if they fully qualify. This sort of measure might look rather harsh for some countries.

Furthermore, officials highlight that unregistered or unauthorized activities are prohibited. Television, radio, and Internet operators have the right to restrict access to the services provided by unregistered parties. Members will have to comply with the new legal system within a year after regulators release the guidelines.