• Romanian authorities have carried out raids against people suspected of hiding income from cryptocurrency operations
• Law enforcement and tax officials in Romania accused 19 individuals of forming or joining an organized crime group for the purpose of tax evasion
• The taxable income, which they tried to hide, was obtained from transactions with digital currencies
In a move to clamp down on cryptocurrency tax evasion, Romanian authorities have conducted a series of raids against individuals suspected of hiding income from digital asset operations. The raids, carried out in late 2022, followed an investigation which established that traders had failed to report digital assets exceeding $50 million in value.
The investigation, launched by the National Agency for Fiscal Administration (ANAF) last summer, revealed that nineteen individuals had formed or joined an organized crime group for the purpose of evading taxes. Through the use of platforms such as Binance, Kucoin, Maiar, Bitmart, and the now-defunct EtherDelta, the group had generated profits from cryptocurrency trading between 2016 and 2021, but had failed to report this income to the authorities.
As part of the operation, law enforcement and tax officials searched addresses in Bucharest and the counties of Dâmbovița, Ilfov and Olt. The investigation estimated that the group had caused losses to the state budget of 3 million Romanian lei (almost $650,000).
The raids are part of a larger effort by the Romanian government to increase compliance among cryptocurrency taxpayers. The country’s tax authority has set up a special unit to investigate and combat tax fraud, and has been working with law enforcement agencies to identify and prosecute individuals who are not reporting their digital asset profits.
The efforts are part of a wider European trend to increase transparency in the cryptocurrency market. In the UK, for example, the government has proposed a new law which would require digital asset exchanges to report suspicious activities to the authorities. Other countries such as France and Germany have also introduced stricter regulations on the sector.
Cryptocurrency is becoming increasingly popular in Romania, with many traders attracted by its high returns and ease of use. However, the country’s authorities are committed to ensuring that digital asset profits are properly reported and taxed, in order to protect the state’s interests and ensure a fair and transparent market. With the latest raids, they have sent a strong message that those who fail to comply with the law will face the consequences.