ROMANIA Law and Practice Contributed by: Sergiu-Traian Vasilescu, Luca Dejan, Bogdan Rotaru and Ana-Maria Bută, VD Law Group
ing, improved scalability and enhanced customer experiences. Blockchain and Decentralised Finance (DeFi) Romania is witnessing growing interest in blockchain technology and its applications, including Layer 1, 2 and 3 solutions, as well as blockchain infrastructure development. Decentralised finance (DeFi) is gain - ing traction, with platforms offering services such as decentralised exchanges (DEXs), lending proto - cols, staking and stablecoins. These innovations are reshaping the financial landscape by providing alter - natives to traditional intermediaries. Neo-Banking Neo-banks, or digital-only banks, are emerging as key players in Romania’s fintech sector. These banks operate entirely online, offering user-friendly mobile apps, low fees and innovative features tailored to tech-savvy consumers and businesses. Factoring and Invoice Financing Fintechs in Romania are also active in the factoring and invoice financing space, providing SMEs with faster access to working capital through digital plat - forms that streamline the approval and funding pro - cesses. Real Estate Tokenisation Real estate tokenisation is an emerging trend in Romania, enabling the fractional ownership of prop - erty through blockchain-based digital tokens. This innovation democratises access to real estate invest - ments and enhances liquidity in the market. Open Banking Open banking is gaining momentum in Romania, driven by regulatory initiatives such as the Revised Payment Services Directive (PSD2). Third-party pro - viders are leveraging APIs to access bank customer data, enabling the development of innovative financial products and services. Regulatory Technology (Regtech) Regtech solutions are becoming increasingly impor - tant in Romania, helping financial institutions manage compliance with evolving regulations. These technol - ogies include tools for anti-money laundering (AML),
know-your-customer (KYC) processes, fraud detec - tion and automated reporting. Sustainable Finance While still in its early stages, sustainable finance is beginning to take root in Romania. Fintechs are exploring ways to integrate environmental, social and governance (ESG) criteria into their offerings, promot - ing investments in renewable energy, social impact projects and other sustainable initiatives. E-Commerce Platforms E-commerce platforms in Romania are increasingly integrating fintech solutions to enhance transac - tional efficiency and customer engagement. These platforms leverage embedded finance models, such as instant payment gateways, “buy now, pay later” (BNPL) services and dynamic currency conversion tools for cross-border transactions. Partnerships between e-commerce providers and fintech firms enable seamless integration of digital wallets, AI-driv - en personalised credit offers, and blockchain-based supply chain financing. Additionally, compliance with PSD2 has facilitated secure open banking integra - tions, allowing direct bank-to-platform payments and reducing reliance on traditional card networks. This vertical is further bolstered by the adoption of AI for fraud prevention and big data analytics to optimise consumer financial behaviour insights. 2.2 Regulatory Regime The regulatory landscape for industry participants in emerging sectors such as AI, payments, e-commerce, regtech, neo-banking, tokenisation, cryptocurrencies, DeFi, open banking and factoring is evolving rapidly, especially within jurisdictions like the EU and specific national regulations, including Romania’s domestic law. These sectors are subject to an interplay between local, national and supranational frameworks, which influence the compliance requirements depending on the business model. AI The regulation of AI is guided primarily by the EU AI Act, which introduces a risk-based approach to the regulation of AI systems. The Act categorises AI sys - tems based on their risk levels, with specific obliga - tions for high-risk applications. Romania, as an EU
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