In the recent past, there was an era when cryptocurrency used to be a topic of discussion only amongst tech nerds. However, the virtual currency had a journey projecting a significant price rise & has slowly adopted the figure of a financial haven by pushing out some tough contenders like gold. Thus, it has necessitated the regulatory bodies and governments globally to decide on a stand in relation to Cryptocurrency. In Romania, the minister in charge of commerce, and entrepreneurship, Mr. Laufer has showcased some faith in the cryptocurrency world. However, he agreed that the same market needs to have some form of ground regulations in order to gain optimum benefits.
Legal Status of Cryptocurrency in Romania.
In reference to Article 4-(1)(f) of the Romanian Constitution number. 127 regarding issuing of electronic currency, an electronic currency is an electronically stored monetary value, that represents a form of receivable against the issuer, given on the receiving of any funds with the sole purpose of making payments, and which is in turn accepted by a person, who is not the issuer.
Because Cryptocurrency isn't issued by a qualified or authorized issuer in accordance to Chapter-II of Romanian Law No-127/2011, it does not qualify as an electronic currency, & therefore cannot fall in a category of legally-accepted currency. This interpretation to the constitution is also the stand taken by the RNB which is the Romanian National Bank.
Regulation of Bitcoin And Other Cryptocurrencies in Romania.
As at the moment, Romania is among the countries that have taken a wait, see and study approach when it comes to cryptocurrency regulation. This means that Romania has no existing regulations pertaining the cryptocurrency eco-system. However, Mr. Laufer, the Romanian minister of finance, Commerce, and Entrepreneurship, notes that cryptocurrency is an emerging challenge for the banking systems & regulation will be the solution. Mr. Laufer also categorically states that while he has a firm belief in the cryptocurrencies market, he also sees that the space should have regulations within the country. He says,
“I believe that the market has a special dynamic. When speaking about cryptocurrencies, we talk primarily about Bitcoin. It is a more volatile trade than any usual one in place. On one hand, it might attract massive investments, which we already see happening. It is a new system that is anchored on the trust of people who use this blockchain. It is a bit different compared to listed stock or other properties you could purchase through a stock exchange.”
According to the minister, although the Bitcoin eco-system offers various opportunities and benefits, there still is need to undertake massive studies that can come up with ways to regulate the trade in order to realize all the benefits of cryptocurrency.
When it comes to Romania’s National Bank-RNB, it has advised Romanian citizens against transacting with cryptocurrency i their current unregulated state, notting that, cryptocurrencies such as Bitcoin are very risky & volatile assets. The bank also notes that the reputational & financial risks have been heightened for owners, in context to lacking of oversight and regulation of the virtual currency schemes within the country.
The ministry of finance and financial regulating bodies have not revealed any detailed plans on what regulations they have in mind pertaining the cryptocurrency eco-system. Their tone, however, does not seem to show that they want to put bottlenecks on Bitcoin’s flow in the country. As for the moment, we will have to wait for any future plans on regulation for the Romanian cryptocurrency space.