Romania's National Bank (BNR) notes the growing public interest in virtual currencies ("also known as cryptocurrencies") and warns that these remain "speculative assets, very volatile and extremely risky," which have a high potential to generate financial losses for investors.

However, the central bank believes the risks specific to the possession and trading of virtual currencies "do not represent at this moment a threat to the financial stability in Romania."

The existing regulations in Romania do not contain provisions prohibiting credit institutions from offering account services to providers of exchange services between virtual and fiduciary currencies and to providers of digital wallets.

However, BNR recommends that credit institutions comply with standard measures to know customers and manage risks in money laundering and terrorist financing. The credit institutions must also consider the risks to which they are exposed due to the payment account services for providers of exchange services between virtual and fiduciary currencies by adapting internal risk policies and risk management capacity.

Marius Morra, CEO and co-founder of LDV Exchange, one of the most popular cryptocurrency exchanges in Romania, welcomed BNR's comment, according to Ziarul Financiar. "Even if they [BNR] still emanate an air of mistrust," particularly in that it does specifically "do not forbid banks to work with us."

Until now, FinTechs such as LDV Exchange have been facing account closures in the context of several commercial banks in the local market being sensitive to transactions with funds from cryptocurrencies, Morra explained. 

iulian@romania-insider.com

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