The CEO of the largest crypto exchange in Romania, Coinflux, was reportedly arrested on a US warrant for fraud, organized crime and money laundering, local Mediafax news outlet reported on 13 December. Coinflux has later stopped all exchanges of digital currencies.
Founded in 2015 in Cluj, Romania, Coinflux is an online digital currency trading platform of over EUR 200 million worth transactions in Bitcoin( BTC), Ethereum( ETH), Litecoin( LTC) and Ripple( XRP).
At the request of US prosecutors, Vlad Nistor, the CEO and founder of Coinflux, was allegedly arrested in Romania. Nistor is charged with alleged fraud, organized crime and money laundering. The issue of Nistor ‘s extradition to the US is reportedly heard by the Appeals Court in Bucharest.
After the alleged arrest, Coinflux announced that the exchange had temporarily suspended all digital currency exchanges while the bank accounts of the company were frozen. Coinflux states that the ongoing research has also limited access to certain parts of the platform.
In July 2018, the Romanian Ministry of Finance issued a draft emergency order regulating the issuance of electronic money (e-money). According to the document, any legal entity seeking to issue e-money must have a share capital of not less than € 350,000 ($ 395,000) while the Romanian National Bank (BNR) approves its members.
While the country’s first Bitcoin automated teller machine (ATM) appeared back in 2014, Romanian authorities took approximately three years to comment on cryptocurrencies. In 2017, Ilan Laufer, Romania’s Environment Minister for Business, Trade and Entrepreneurship, expressed his belief in cryptocurrencies but pointed out that the area should be regulated officially.
