Obtain a Crypto License in Romania

Investors who open a crypto company will need to apply for and obtain a crypto license in Romania. This will be issued by the Ministry of Finance to those companies that engage in virtual currency exchange services, as well as those that provide other types of connected services.
 
In this article, our experts in company formation in Romania highlight the main provisions applicable to crypto companies and the importance of the virtual asset service provider (VASP) license.
 
For complete solutions related to business creation, including assistance to open a Romanian micro company, please do not hesitate to reach out to our team.

Quick Facts
Cryptocurrency seen as legal tender (Yes/No)	No
Local regulatory agency	The Ministry of Finance
Special licenses for those who open a cryptocurrency company in Romania	A special licensing regime is discussed by the lawmakers.
Special licenses for crypto exchanges in Romania	As per the licensing regime discussed and pending implementation.
Anti-money laundering rules	According to the National Office for the Prevention and Control of Money Laundering
Special requirements for investors who open a cryptocurrency company in Romania	Observe the current and pending licensing requirements, as well as those for preventing terrorist financing and money laundering,
Residency requirements for investors	Not applicable
Types of companies used by those who open a cryptocurrency company in Romania	The private limited liability company (SRL) is the most commonly used business form.
Minimum capital for a cryptocurrency company in Romania	No minimum capital for the LLC
Minimum number of shareholders	1
Minimum number of directors	1
Business license	Yes
Mandatory requirements for the cryptocurrency company	Have a specific NACE code for these types of activities and follow the licensing and incorporation procedures in Romania (both the current and the pending ones).
Cryptocurrency company taxation	Corporate income tax rate of 16%; a lower rate of 1% or 3% of revenue applies to qualifying micro-companies.
Reasons to open a cryptocurrency company in Romania	A straightforward company formation process that can be fully assisted by our team, minimum incorporation requirements for the LLC, certain tax benefits under the micro-company regime.

What types of companies need a crypto license in Romania?

Companies that engage in the provision of exchange services between virtual currencies and fiat currencies, as well as those that fall under the “digital wallet provider” category, need to comply with specific requirements.

A VASP license in Romania will be required for Romanian and EU Member States crypto exchanges and digital wallet services providers that will be offering their solutions in the country.

The approval for functioning will be granted by the Ministry of Finance and the draft Decision for the approval of the ministerial decree is currently being debated, along with its modifications and additions.

Moreover, in addition to having to issue the crypto license in Romania, the Ministry of Finance will also be publishing a list of authorized entities.

These legal provisions are developed, drafted and amended by the Ministry of Finance together with the  Authority for the Digitization of Romania and the National Office for the Prevention and Control of Money Laundering.

We present an infographic on this topic:

What are the conditions for obtaining a VASP license in Romania?

The draft government decision on the authorization of virtual service providers in Romania is still subject to amendments and debate, however, certain conditions for authorization have been provided for:

• The company needs to be incorporated as per the rules for company formation in Romania, Law 31/1990;
• The company needs to have a specific NACE code;
• The legal entity shall have at least one bank account opened in Romania for the fiat currency that it will be exchanging into/from virtual currency;
• A crypto company shall obtain a technical opinion from the Authority for Digitization.

Additionally, an updated form of the law also stipulates that these types of companies will need to have a civil liability insurance policy:

• The policy value is EUR 300,000;
• Starting with the company’s second year of activity, the policy value shall be 1% of the value of virtual and fiat currencies that exist in digital wallets, but no less than EUR 300,000;
• The initial law also provided for penalties for failure to comply with the provisions, between RON 10,000 and RON 50,000.

Please keep in mind that these legal requirements are currently under debate. Our team can provide updated information upon request. We also invite you to watch a video:

What other laws apply to companies holding a crypto license in Romania?

Investors who wish to register a company in Romania that will offer virtual currency exchange services and/or digital wallet services will need to comply with the rules for anti-money laundering.

Law no. 129/2019 on the prevention and combating of money laundering and terrorist financing has been updated to include references to crypto companies, including those that will be required to apply for and obtain a crypto license in Romania.

Our team specializing in company formation in Romania highlights some of the requirements to which companies that observe the anti-money laundering law are subject to:

• Provide information on the manner in which they fulfil their responsibilities according to a pre-determined action plan;
• Give details on how they collaborate with other authorities, as needed. To the extent that this is possible, also offer details on the financial and human resources they allot to combat money laundering and terrorist financing;
• Provide information on the staff (human resources) hired to perform the task of supervising anti-money laundering and terrorist financing;
• Offer details on the number and the type of supervisory actions and the number of infringements recorded based on the aforementioned supervisory actions.

When introducing crypto companies within the scope of the anti-money laundering and terrorist financing law, the lawmakers define these companies in the following manner:

• Virtual currencies are a digital representation of value that is not issued or guaranteed by a central bank or public authority, is not necessarily linked to a legally established currency and does not have the legal status of currency or money, but is accepted by natural or legal persons as a medium of exchange and can be transferred, stored and traded electronically;
• A digital wallet provider is an entity that provides services for the secure safekeeping of private cryptographic keys on behalf of its customers for the holding, storage and transfer of virtual currency. We remind investors who wish to open a company that offers these services that they will be subject to the requirements to obtain a VASP license in Romania.

In addition to the local laws and regulations, crypto companies in Romania also observe certain EU Directives. We highlight some important principles below:

• These types of companies are prevented from using the financial system for the purpose of money laundering or terrorism financing;
• Virtual currency exchange services providers and/or digital wallet services providers allow the competent authorities from the country in which they are registered to monitor the use of virtual currencies and identify suspicious activities.

The amended Romanian law for the prevention of money laundering and terrorist financing also includes a paragraph (Article 1, paragraph 11) which states that the responsible Office will submit an annual report to the European Commission on the statistics provided for in paragraph 10 of the amended law.

Crypto license application assistance

Our team can assist investors who wish to register a company in Romania that will engage in activities assimilated under the activities of virtual currency services and/or digital wallet provision.

While the laws and the effective governance for this sector are still under debate, the reform and the changes will significantly impact companies, which will thereafter be required to apply for and obtain a crypto license in Romania. Our agents are ready to provide counsel and assistance for licensing, once this becomes available.

For investors who open a Romanian company involved in crypto trading, mining, digital wallet service provision, and other activities, our team can offer assistance throughout all the company formation stages, including any needed applications for the provision of financial services, as may be required according to the legal entity’s object of activity.

If you would like to know more about the conditions for authorization for companies that need to hold a crypto license in Romania, please contact our local specialists.