Luca Dejan Featured in CEE Legal Matters: Building with Blockchain in CEE

Luca Dejan, Partner at VD Law Group, was featured in the latest issue of CEE Legal Matters as part of the round table discussion “Building with Blockchain in CEE”, bringing together fintech and emerging technology experts from Central and Eastern Europe.

The virtual round table, held on March 26, 2024, was moderated by CEE Legal Matters Managing Editor Radu Neag and focused on how blockchain technologies, businesses, and regulations are evolving across the region.

Market Evolution in Romania

Luca Dejan highlighted that blockchain adoption in Romania accelerated alongside the rise of Bitcoin and cryptocurrencies. Initial coin offerings became a major trend, increasing awareness among both public and private institutions.

By 2017–2018, crypto assets had become a central topic of discussion, with blockchain even being used to enhance transparency in Romania’s 2020 parliamentary elections.

Client Profiles and Industry Landscape

Romania’s strong IT sector has supported the development of blockchain start-ups, crypto exchanges, NFT platforms, gaming projects, and crypto payment services.

Tokenisation, particularly in real estate, emerged as a key trend. However, regulatory frameworks have struggled to keep pace with technological developments, leading companies to explore alternative jurisdictions, including Dubai, for regulatory flexibility.

Blockchain and Emerging Technologies

Luca Dejan associated blockchain primarily with crypto assets and service providers, while also highlighting its growing integration with artificial intelligence, especially in medical-related projects combining both technologies.

Promising Use Cases

Key applications of blockchain in Romania include:

• Supply chain management in retail
• Decentralised finance and lending protocols
• Fashion authentication and provenance systems
• Potential land registry solutions

These use cases demonstrate blockchain’s expanding role beyond cryptocurrencies.

Regulatory Approach

Romania maintains a relatively open approach, with no strict registration regime for crypto businesses. Initial regulation focused mainly on taxation and financial reporting.

While AML and KYC frameworks exist, implementation remains incomplete. Proposed regulatory procedures have been delayed, and MiCA implementation is expected to reshape the market.

Regulators continue to monitor the crypto sector through official warnings and guidance.

Taxation of Crypto Assets

Romania applies specific tax rules for individuals, with gains exceeding EUR 150 subject to a 10% tax. Social contributions are calculated based on income thresholds. There is currently no separate tax regime for corporate crypto activities.

Upcoming Regulations and Firm Preparation

Romania is preparing for the implementation of MiCA, the DLT pilot regime, and related EU frameworks. These regulations will introduce significant compliance requirements across the sector.

VD Law Group actively engages with regulators, participates in training sessions, and maintains open dialogue with authorities to anticipate regulatory developments and support client compliance.

The firm also combines legal expertise with technical capabilities, including smart contract audits and collaboration with external specialists.

Future Outlook

Luca Dejan expressed his vision for a swift MiCA implementation and the continued growth of Romania’s fintech ecosystem. He emphasized that the evolving regulatory environment presents a unique opportunity for innovation and professional development in the blockchain sector.

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