EuropeRomania

Crypto Regulations in Romania

Romania does not have a specific regulation for cryptocurrencies. Currently, the main regulation of each industry where cryptocurrencies are used is amended.

Source: ICLG

In Romania, as in many EU jurisdictions, cryptocurrencies are not considered legal tender, nor electronic money, but rather digital assets bearing a limited role as currency or having a utility role in a determined cooperative system.

Source: The Law Reviews

Generally companies and exchanges are allowed to use cryptocurrencies for their activities. If for example accepting payments in Bitcoin these are considered to be assets and taxed as income based on their market price. In Romania there are a few exchanges, yet its oldest, BTCxChange had to shut down its business due to the closure of its bank account. Another exchange, CryptoCoin Pro ended its relation with Romanian banks because of, what the CEO mentioned, “vague” reasons.

Source: Blockpit

In Romania, as in many EU jurisdictions, cryptocurrencies are not considered legal tender, nor electronic money, but rather digital assets bearing a limited role as currency or having a utility role in a determined cooperative system.

Source: Blockpit

In Romania, cryptocurrency transactions are subject to income taxes. Gains made from Bitcoin investments are taxed at a 10% rate. Gains generated from buying and selling crypto are categorized as “income from other sources,” thereby subjecting crypto to income taxes. Crypto earnings must be declared in an annual income statement. Revenues are not taxed as income. Gains under $50 are exempt from taxation. However, investors who earn over $150 in crypto earnings are subject to the 10% tax income.

Source: Freeman Law

For tax purposes, profits made from cryptocurrencies are subject to income or capital gains tax, both at a flat rate of 10% (capped at a maximum of EUR 5,000 per annum). For individuals, the profits are included in the personal income tax return. Other than this information and a warning published by Romania’s National Bank in 2015, stating that investing in such currencies involves high risk, there are no clear implications for the regulation of cryptocurrencies for personal use. Still, it is to be expected that more regulations will be discussed in the future as the market in Romania sees rapid growth. A recent study by Statista identifies that 12% of Romanians own cryptocurrencies and hence are in second place after Turkey. Taxpayers (except for non-profit organizations and taxpayers deriving most of their income from agriculture) must submit the profit tax returns by the 25th day of the first month following the first, second, and third quarters. The annual profit tax return is due by 25 March of the following year if the fiscal year equals the calendar year; for the cases where the fiscal year is different than the calendar year, the annual profit tax return is due by the 25th day of the third month after the end of the company’s fiscal year.

Source: Blockpit

The GEO requires all crypto exchange providers, which handle the purchase and sales of digital currency to receive direct authorization to operate in Romania. Service providers that qualify for 5AMLD and are currently operating in the European Economic Area will not be able to operate in Romania unless they go through an additional registration process. An operator must apply for verification to show it is complying with the policies of its country of origin, and it needs to have a permanent agent in Romania who is authorized to contract with foreign entities and represent these in Romanian courts.

Source: Coin Journal

On July 18, 2019, the Romanian government enacted Part I, Law No. 129/2019 for preventing and combating money laundering and terrorist financing. The emergency ordinance (“GEO”) requires crypto exchange services and digital wallet providers to register with the government to fight cyber crimes. The Fifth Anti-Money Laundering and Terrorism Financing Directive (“5AMLD”) applies to all of Europe, including Romania. The 5AMLD’s purpose is to increase transparency in crypto transactions to prevent unethical use of the technology. However, the Romanian government passed the GEO to strengthen the strictness of crypto regulation in Romania. Specifically, the GEO was legislated to advance and improve the 5AMLD’s purpose.

Source: Freeman Law

The law expressly forbids the carrying out the activities of being a provider of cryptocurrency exchange services as well as a provider of digital wallets without having such authorization. Failure to comply with these obligations is punishable either by a fine or imprisonment. The authorized entities will also become reporting entities in accordance with the Anti Money Laundering legislation and will have the obligation to report any suspect or suspicious transaction to the National Office for Preventing and Combating Money Laundering.

Source: HG Org

Not available

Fifteen defendants, most of them Romanians, have pleaded guilty to-date for their roles in a transnational and multi-million-dollar scheme to defraud American victims through online auction fraud. Among them is Vlad-Calin Nistor, the founder of a Bitcoin exchange based in Romania – Coinflux, which has been shut down.

Source: Romania Insider

A barber in Romania suspected of stealing $620,000 in cryptocurrency from an unnamed company in the Cayman Islands has been apprehended. Ionel Roman, 38, from the southern city of Craiova, was arrested on March 5, and was charged with hacking, IT fraud and money laundering. According to a statement by prosecutors, Roman launched a cyberattack on a Cayman Islands-based company, described as “the seventh-largest cryptocurrency operator in the world,” in late Janaury. The barber then transferred $620,000 worth of crypto to several people who paid him in fiat currency.

Source: Coin Desk

Romanian Suspected of Audacious Cryptocurrency Theft Arrested Police have detained a man suspected of stealing half-a-million euros’ worth of cryptocurrency from a Cayman Islands operator, which he then transferred to the personal accounts of several others.

Source: Balkan Inisight

Romanian authorities to arrest two individuals suspected of ransomware cyber-attacks and believed to be responsible for 5,000 infections as well as half a million euros profit in ransom payments; The arrest of a man believed to be responsible for the Kaseya ransomware attack, thought to have been carried out last July by the REvil gang with more than 1,500 people and 1,000 businesses affected worldwide.

Source: Interpol

Initiatives such as the creation of RoFin.Tech prove that fintech is becoming more and more interesting for entrepreneurs all over Europe. This also can be seen in other recent measures taken by local financial authorities. In 2019, the Romanian National Bank and the Romanian Financial Supervisory Authority launched Fintech Hubs to create a regulatory sandbox permitting companies to present and test their fintech businesses or ideas for the authorities to understand and create a well-adapted legal framework that would be favorable and acceptable for players from the financial industry.

Source: Schoenherr