Legal Ripples: Italy Says “No” to Crypto Chaos

cryptocurrency

More and more companies are involved in cryptocurrency business in this or that way, and it is most likely that it will be more and more difficult for businesses to stay aside. Many have voiced concerns about cryptos being used to launder money or legalize proceeds from crime, and countries have responded by implementing related laws.

This time it was Italy’s turn. The Italian Ministry of Economy and Finance asked various parties from the cryptocurrency world in the country for suggestions, and after two-week public consultations, Italian regulators finalized the decree on cryptocurrency business, which is due to come into force within the next three months. The decree says crypto exchanges or lenders, crypto trading platforms and similar cryptocurrency firms have to obtain registration from the Brokers and Agents Organism (OAM), a special Italian entity set up to deal with financial and credit brokers. The registration is to be completed within 60 days since the date the decree was published. Cryptocurrency issuers will also have to mention that the coin is not issued by the central bank or any other public authority.

The new rules also cover commercial businesses that provide services in exchange for cryptocurrencies. They will have to provide regulators with information about the parties.

Italian authorities say the main purpose of the decree is to prevent illegal activities, including terrorism financing. Also, they would like to determine the scope of cryptocurrency business in Italy. The decree complies with latest EU AML legislation, including the 5th Anti-Money Laundering Directive. 

The adoption of cryptocurrency legislation is seen as a positive step by many. With more regulations implemented, cryptocurrencies will stop being a safe haven for fraudsters, which means there will be more opportunities for solid serious business.