News: Regulation of cryptocurrencies in Italy

On February 2, 2018, official press release stating that the profile committee of the Ministry has completed work on a special set of rules aimed at regulating the cryptocurrency market in Italywas published on the official website of the Ministry of Economy and Finance of Italy. Above set of rules involves a range of amendments, planned to be introduced into current legislation, if approved and adopted. In particular, it is planned to amend the Legislative Decree "Attuazione Della Direttiva" of May 25, 2017 ("On the implementation of the EU Directive 2015/847"). At the moment, this document is at the stage of public discussion. Anyone can send their remarks and comments to the official e-mail box of relevant department.

Italian authorities are confident that cryptocurrency is a number one instrument among those used to finance terrorism and for money laundering. And, accordingly, this set of rules was developed to remedy this situation.

According to the text of this document, cryptocurrency will be referred to as virtual currency in the country, and it will be used as a means of exchange for standard goods and services. It is worth noting that cryptocurrency is not issued by the Central Bank, it has no reference to the rate of other traditional currencies, therefore it need not be regarded as a means of payment.

Moreover, there are special requirements for service providers in any way related to cryptocurrencies. Specialized register of service providers will be created in a public domain. Each operating provider of such services will have to undergo registration procedure in the register within 60 days after new rules come into force. Any person who has a desire to continue being engaged in such activities will have to undergo registration procedure in advance.

Italian authorities are confident that such norms will help to assess current volume of the cryptocurrency market in Italy, give the government representatives certain ground for reflection so that to adopt additional regulatory actslater on, using these statistics.