At the beginning of February 2018, the Italian Ministry of Economy and Finance started consults which aimed to clarify the current use of cryptocurrencies by collecting opinions, comments and suggestions on the subject.
This will allow the Italian government to do a thorough study and expand the knowledge of crypto-finance to the Italian public. The study will be conducted under the supervision of the Treasury Department.
Italian Laws on Cryptocurrency
In the first lines of the decree, it aims to clarify the current situation of cryptocurrency within the country.
Cryptographic currencies are virtual representations of values that can be used as a medium of trade to acquire goods and services or to be bought and sold digitally. They are not issued by any public authority or central bank and they are not considered a form of legal tender.
The new regulations provide information for the suppliers of the cryptocurrencies and explain their obligations. With the new laws, all service providers that accept virtual currency will be required by law to report their activities and revenues to the Ministry of Economy and Finance.
The goal of the new legislation is to reinforce recent laws that were adopted by the European Union, of which Italy is a founding member, to help in the fight against money laundering. In fact, the new regulations are mostly aimed at the financing of criminal activities.
A New and Improved Database
Once the legislation is passed, all companies that use cryptocurrency will be forced to register to a new ledger designed by the Association of Agents and Mediators. With this, the Italian government will be able to gain insight into the size of their own domestic cryptographic market, as well as being able to see how money Italian companies collaborate with them.
Robert Ciciani, Director of the Financial Crime Prevention Agency, argued with this saying, “The establishment and application of the new register will contribute to ensuring better compliance with the regulations for companies and will also give them the legal ability to operate.”
Each major player will have until February 16th to make a comment on the topic. All comments that are received will be made available to the people unless there is a request for a non-disclosure.
The new regulations must all be implemented before the law is passed in July 2018.
A World of Perpetual Motion
Other than Italy, many other countries are also working towards implementing legislation to try and regulate the cryptocurrency markets.
In Ukraine, for example, lawmakers are debating separate laws that will apply to cryptocurrency and miners respectively. Following numerous attempts to quash miners, law enforcement agencies have been heavily criticized. Olexandr Danchenko, a Ukrainian deputy recently suggested about the separation of the regulation regarding mining activities and cryptocurrencies.
Aside, other major countries such as China, South Korea, and the United States are currently undergoing studies to see how they too can benefit from cryptocurrency.
In other major countries like China, South Korea, the United States of studies are also underway.