The Central Bank of that country has relaxed its criteria regarding cryptocurrencies.
The cryptocurrencies have gained popularity continuously in Moldova, an old Soviet republic that is at a political and economic crossroads between East and West. The crypto-local community has recently announced developments that reflect this trend: a new exchange and a new token have been submitted, both labeled as "Made in Moldova". Added to this, an indirect permit from the central bank.
The exchange Drachmae Market will initially market 10 digital currencies, including leading cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH), as well as a couple of Moldovan tokens, such as Zozo coin and Drachmae's DTMI token. The trading platform also supports transactions of eight fiduciary currencies, including euros, dollars, rubles and, of course, Moldovan leu (CDM). The exchange Drachmae Market, established with the help of the Digital & Distributed Technology Moldova Association (DTMA), has been announced as the first crypto exchange in the country and is already accepting subscriptions.
DTMA was created earlier this year to facilitate the implementation of distributed accounting technologies in the country's economy. It is also working closely with the Moldovan authorities and regulators on a proposal to establish a special technological zone with tax exemptions and incentives for Blockchain startups. A similar project has been carried out successfully in another former Soviet republic, Belarus, where a growing number of fintech companies are taking advantage of their affiliation to Hi-Tech Park in Minsk.
News about the launch of Drachmae Market, which emerged from a Blockchain and cryptocurrency event organized in the capital of Moldova, was covered by local and foreign media. On Friday, the Blockchain and Cryptocurrency World Summit in Chisinau welcomed participants and speakers representing communities from European and Asian countries, from Lithuania to India, according to Cryptovest. The founder and president of DTMA, Lee Gibson Grant, announced at the conference that the exchange had received a notice from the central bank, which could be interpreted as an indirect permission to operate legally.
In the letter presented at the summit, the National Bank of Moldova (NBM) basically says that since there is currently no legal framework to regulate cryptocurrencies in the country, no authorization is required to offer crypto trading services, reports Mybusiness.md. At the same time, Drachmae Market must comply with the anti-money laundering and anti-terrorism laws of the country, because it offers trading pairs with fiat currencies. This means that your operator must share financial data about money flows and transactions processed.
The letter also indicates a certain weakening of the central bank's position with respect to cryptocurrencies. At the end of last year, NBM issued a statement to clarify its position warning that the crypts are not issued or guaranteed by a central bank or a government agency. The bank acknowledged that the "virtual currency represents a digital value" and that "it is used by natural or legal persons as an alternative to cash", but stressed that "it is not linked to the national currency".
"The use of virtual money is not regulated in Moldova. [The cryptocurrency] is not a form of electronic money in the context of the Electronic Payment and Money Services Law, and the activities of issuing [digital currencies] and executing transactions with them are not controlled by the competent authorities, "NBM said. .
The financial authority enumerated a series of risks to which crypto-users are exposed, including fraud, high commissions, loss of funds, market volatility and, last but not least, there are no guarantees of that merchants accept cryptocurrencies. The crypts in Moldova, however, is becoming more popular among users and merchants.