Moldova is young in cryptocurrency and has a few locally made crypto projects including Zozo coin and Drachmae’s own DTMI token. The new crypto exchanges will offer trading pairs with eight fiat currencies.
Moldova, a former Soviet republic, now has a new cryptocurrency exchange and token made locally after the local crypto community made the announcement.
The new exchange is known as Drachmae Market and was set up with the help of local Digital & Distributed Technology Moldova Association (DTMA). It is the country’s first crypto exchange and is already accepting subscription.
The exchange will feature Bitcoin Core (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). As well as Moldovan tokens like Zozo coin and Drachmae’s own DTMI token. It will also support eight fiat currencies including Euro, Dollar and Moldovan Leu (MDL).
It was started at the beginning of this year with an aim to facilitate implementation of distributed ledger technologies in the country. Founder and president of DTMA Lee Gibson Grant also announced at the Friday World Blockchain and Cryptocurrency Summit in Chisinau in Moldova. Therefore, that the exchange has received a notice from the central bank. This might mean that they got an indirect permission to operate legally.
As it is, no authorization is needed to operate crypto trading services in the country because the country does not have a legal framework regulating cryptocurrencies. This is according to a letter presented at the same event by the National Bank of Moldova. However, the exchange will need to adhere to anti-money laundering and counter-terrorism financing laws. Thus, in the country given that it deals with fiat currencies trading pairs.
The announcement by the National Bank of Moldova at the event shows it has softened stance. Since last fall the warnings of dealing with cryptocurrencies as they are not regulated by the bank. And although the bank says virtual currencies have digital value and act as an alternative to cash. However, they are not tie up to the national currency.
It also highlighted possible risks that users expose themselves when dealing with crypto including fraud, high commissions, loss of funds, market volatility. However, that there are no guarantees that merchants would accept cryptocurrencies. However, more and more users are porting in and a large furniture store in Chisinau introduced Bitcoin payments in December. The developments signify that cryptocurrencies are becoming more popular and spreading to new markets.
Moldovan authorities and regulators are working on a proposal to provide blockchain startups with a special tech zone. However, along with tax breaks and incentives and DTMA is working with them on the same. It might resemble the Hi-Tech Park in Minsk in Belarus.