ROMANIA Trends and Developments Contributed by: Sergiu-Traian Vasilescu, Luca Dejan, Bogdan Rotaru and Ana-Maria Bută, VD Law Group
Introduction In recent years, the financial technology sector in Romania has undergone significant changes, position - ing itself as a dynamic hub in the Eastern European market. These developments have been fostered by accelerating technological progress, the implementa - tion of comprehensive new regulations and strategic partnerships between banks, technology providers and regulators. Private service providers in Romania have also estab - lished over 15 new activities based on new emerging technologies, such as: • exchange services between cryptocurrencies and fiat currency; • cryptocurrencies that have one-to-one parity with fiduciary coins (stablecoins); • non-fungible token (NFT) generation services; • services for monitoring transactions/payments with cryptocurrencies (tracking tools); • online games (crypto-games); • e-commerce services (marketplace); • transaction validation activities (mining farms); • initial exchange offerings (IEOs); • cryptocurrency storage services (crypto-wallets); • exchange services between cryptocurrencies (crypto-exchanges); • cryptocurrency payment/receipt services (transac - tion/payment processors); • liquidity assurance services (farming pools/landing platforms); • secure telecommunications services; • governance system decentralisation services; • accepting payments in cryptocurrencies (retail and automobile industries); • organising databases to create transparency and immutability (IT industry); • cryptocurrency fundraising and democratisation of investments (small amounts from a large number of investors – crowdfunding industry and private investments); and • using surplus energy to validate transactions in the blockchain (mining – the green energy industry). In the meantime, regarding the implementation of the provisions of Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) into the national legal frame -
work, no explicit and comprehensive legal regime has yet been established. However, Romania has initiated a draft emergency ordinance, currently subject to pub - lic consultation. The draft ordinance seeks to clarify licensing and registration procedures for stablecoin issuers, define the supervisory roles of the Financial Supervisory Authority ( Autoritatea de Supraveghere Financiară , ASF) and the National Bank of Romania ( Banca Națională a României , BNR), and align exist - ing financial and regulatory legislation with the EU framework. The final scope and practical impact of these measures will depend on the form in which the ordinance is ultimately adopted. Furthermore, as a consequence of the adoption of legislative sandboxes and open banking initiatives, the fintech sector in Romania has seen a considerable increase in collaborations between fintech start-ups and traditional financial institutions. However, the pro - cess of amending national legislation continues and, given both the complexity of the new regulations and the challenges they pose to the fintech sector, the BNR and the ASF are expected to play a crucial role in achieving a balance between fostering innovation and providing financial stability. Technological Trends Shaping Fintech Innovation Expansion of crowdfunding platforms and alternative financial models In recent years, Romania has been actively operating in the alternative financing mechanisms and crowd - funding market, driven by the growing entrepreneurial demand for affordable and flexible capital for innova - tive projects. As a consequence, the EU legal frame - work and national legislation contribute to building a solid foundation for the development of these alterna - tive financial models. The majority of service providers in this field have already obtained all the necessary licences in accordance with the European Regulation on crowdfunding service providers and the relevant national regulations, thus ensuring professionalism and transparency in this field. Due to an increased interest from investors, Romania is gradually but surely emerging as a viable host for a number of crowdfunding platforms looking to initiate operations in the local market. The industry is expe - riencing remarkable growth in both equity and debt
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