In Italy, public consultation on a recent legal framework for virtual currency companies has come to a conclusion. The Italians ministry of Economy and Finance invited relevant players to give ideas and recommendations on a draft paper indicating the establishment of reporting and registration requirements for the industry. The new decree will come into effect after 3 months of implementation.
Italy’s effort to comprehend the buzz
The order by the country’s Ministry of Economy and Finance has been structured to “explore and understand the various aspects of the virtual currency phenomenon”.
On February 2, the MEF’s Treasury department published a legal paper focus on taking action on Italy’s modernized and enhanced anti-money laundering regulation. Within two weeks, relevant stakeholders had the chance to share their views and prescribe recommendations.
The government of Italy issued another declaration in May 2017, which stated that service providers in connection to virtual currency usage such as exchanges should uphold their duties to prohibit money laundering and illegal virtual currency trading.
The new legal paper establishes added obligations for virtual currency businesses. This includes virtual currency firms obligation to report repeatedly their operation to the Ministry of Economics and Finance.
A portion of the draft decree makes it clear that even though virtual currency is utilized as a medium of exchange for commodities, it is not provided by a government agency or a central bank. The inserted disclaimer elaborates as well that virtual currencies are not essentially related to a currency which is a “legal tender”.
Time to Register and Report
This new declaration will also apply to commercial firms approving payments for commodities via virtual currencies. A “systematic survey” shall be undertaking by the ministry beginning with defining the number of businesses participating in this industry.
In order to legally operate in the country, every Firm upon the start of operations must register with the Italian Agency of Intermediaries OAM.
According to a press release, the Ministry of Finance stated that the Department of the Treasury has concluded an initial assessment of the technical peculiarities of the register.
The new law will come into effect within 3 months after launch. Head of the General Directorate for Prevention of Financial Crimes, Roberto Ciciani stressed that its execution is responsive to the need to comprehend the new sensation and its magnitudes.
Authorities clarified that the draft decree will be compatible with the most updated EU Anti-Money Laundering Directive known as 5MLD which establishes firmer guidelines to prohibit “financial crimes”. The last order was accepted in Italy, last year on May 25.
In Italy, individuals using bitcoins and virtual currency are greatly unregulated. Nonetheless, the Italian parliament has passed a regulation requiring identification of individuals involves in virtual currency trading. Virtual Currency purchases and sales are not liable to VAT, sighted the Italian tax Authority, in 2016. Personal crypto holdings and gains from trading do not make taxable income.