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Several months ago, Romania was in the news having established its first cryptocurrency organization. It was reported on March 2, that a non-governmental organization known as the United Blockchain Association of Romania had been formed.

It was stated that its purpose was to enlighten the public and develop a structure for dialogue. The group also promised to address several topics related to the crypto industry with the decision makers in Romania.

Whether it is through the group’s effort or by sheer coincidence, Romania has released a draft Emergency Ordinance. The draft Bill aims to regulate the issuance of electronic money (e-money).

Prerequisites

The draft prepared by the Ministry of Finance of Romania states that those willing to introduce e-monies must ensure that their tax and legal records are verified. As a result, every single member of the company providing electronic money must get an approval by the Romanian National Bank (BNR). They will also be required to have a share capital of $409,000 or more.

According to the draft, electronic money is defined as a monetary value stored electronically. This includes magnetic, representing a claim on the issuer, issued on receipt of funds for performing payments and which is accepted by a person other than the issuer of the electronic money.

The draft also spells out companies that would qualify for issuance of electronic money. Credit institutions, electronic money institutions, the European Central Bank as well as the national central banks make it to the list.

A formal structure

According to the Romanian National Bank, it will only permit companies after proving that the firms have a formal structure for the management of the carefully designed electronic money issuance activity.

BNR expects that the structure will have a well-defined, transparent, and coherent responsibility lines. Companies interested to issue electronic monies should also ensure that they have efficient risk management processes, in addition to having adequate internal control mechanisms.

The companies that will be issuing the e-money will be expected to present annual audit reports and submit the accounts to the BNR. Those who will issue e-money without authorization will be committing a crime.

If granted, the permits will be valid for one year.

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