The European Union’s 5AMLD has been adopted as the first regulation in Romania for crypto and blockchain World

The European Union and the European Central Bank wanted to create a legal structure that would limit transparency issues in cryptocurrency transactions such as money laundering, terrorist financing, and tax evasion.

The easiest and simplest method of doing this was to check the route of fiat currencies. Any purchase of digital currency with fiat money and vice versa is monitored through exchange providers.

Since there is no national framework in the EU to ensure the regulation on digital currencies, digital foreign services, and providers of custody wallets, adoption has been made for this. The Fifth Anti-Money Laundering and Terrorism Financing Directive, also called 5AMLD is the implementation of additional measures regarding the transparency and security of financial transactions.

The measures implemented by Romania were published on July 18, 2019, in the Official Gazette of Romania. Part I, Law No. 129/2019 dealt with preventing and combating money laundering and terrorist financing.

However, it did not fully transpose 5AMLD, omitting categories of reporting entities, such as those in the field of cryptocurrencies. The non-transposition of 5AMLD led Romania to the Court of Justice of the European Union, currently Case C-549/18.

In order to streamline the system for preventing money laundering, the Government of Romania adopted an Emergency Ordinance on July 1, 2020, on amending and supplementing Law No. 129/2019, referred to as GEO, which also transposes the rest of 5AMLD into Romanian legislation.

In conclusion, the success and popularity of blockchain development in Romania, including the adoption of new business models, depends solely on how the authorities will implement these policies and how these policies can improve the infrastructure.

With the great innovative potential that can benefit tech products, the label “Made in Romania” seems ever more within reach.

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Jessica Bay

Jessica is a full-time writer and has been a Bitcoin Specialist for over 6 years. Providing daily cryptocurrency news and updates for NewsBitcoin24/7.com

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