On February 17, the decree of the Ministry of Finance establishing the Italian register of cryptocurrency exchanges on the OAM (Organismo Affari in Mediazione) was published in the Official Journal. Italy`s new rules include a requirement that is not fully in line with the EU`s ambitious passable licence for VASPs. You are a VASP and must comply with the new decree? Feel free to request a demo of our crypto compliance solution to find out how it can help you comply with this new decree. In fact, according to the Consolidated Law on Banks and Legislative Decree No. 11 of January 27, 2010 (Implementing Directive (EU) 2015/236614), crypto-assets and cryptocurrencies cannot be considered funds. Therefore, transactions in cryptocurrencies (or other comparable cryptoassets) may not be considered payment transactions. The reason they have become so attractive is that they serve a variety of purposes: from an innovative payment method to an alternative (and rather unregulated) means of speculation. The explosion in value achieved by major cryptocurrencies in the second half of 2017 to 2018 (when Bitcoin was worth around $20,000) was indeed a key factor, supported in part by the Chicago Stock Exchange`s groundbreaking decision to allow cryptocurrency futures trading, among other things. Deposit into an account is possible via SEPA, Etana Custody and bank transfer. A minimum deposit of €3 applies to SEPA deposits that are free.

Merchants can use the Buy It Now option to buy crypto with a card. There is a transaction fee of 2.75%. Otherwise, Kraken Pro Trading Chargers takes 0.26% and manufacturers 0.16% up to $50,000 in trading volume. On the other hand, if the issuance concerns cryptoassets that are not financial in nature (i.e. assets other than financial instruments or financial products), no specific regulations apply. The legal framework applicable to issuers depends on the cryptoasset issued. If the issue concerns cryptoassets considered to be financial instruments (i.e. investment tokens and, in rare cases, utility tokens), Articles 94 et seq. of the consolidated finance law apply. In addition, another aspect that argues in favour of excluding cryptocurrency-backed stablecoins from the scope of the definition of electronic money is the difficulty of identifying an issuer that must comply with the provisions of the applicable law, since in most cases its issuance is managed by a decentralized autonomous organization (as is the case with DAI, B. stablecoin issued by MakerDAO) or through a computer protocol in the form of a smart contract (as in the case of VAI, the stablecoin issued by Venus). After all, cryptocurrencies are cryptoassets whose function is to pay for services or acquire other tokens.

These currencies benefit from decentralization and are different from fiat currencies because they are neither certified nor backed by central financial institutions. The Organismo Agenti e Mediatori (OAM), an Italian regulator that maintains lists of financial agents such as credit intermediaries and bureaux de change operating in the country, was indeed busy. While regulators are generally criticized by the industry for delays in processing applications, Italy`s OAM quickly added 73 crypto companies — including those listed above — to its new list of virtual currency service providers, which only opened in May. Under Italian law, most cryptocurrencies are considered financial instruments. First, the Italian tax administration regulates cryptocurrencies as if they were financial instruments. In particular, Italy taxes cryptocurrencies in the same way as foreign currencies, as both are not legal tender in Italy. Since foreign currencies are still considered financial instruments, the Italian tax authorities tax cryptocurrencies as financial instruments. In addition, the Italian Supreme Court ruled that Bitcoin is correctly classified as a financial instrument under Italian law. Therefore, it is generally accepted that cryptocurrencies are financial instruments and are therefore subject to MiFID II regulation in Italy.

Another candidate for the best cryptocurrency exchanges is Binance. This platform has grown considerably, with over 90 million users, 600 cryptos available, and one of the highest daily trading volumes. Our crypto exchange review team has discovered that the best Bitcoin exchange in Italy is eToro, in terms of the most regulated and secure. 16 Cryptocurrency-backed stablecoins are stablecoins whose value is given by the value of several cryptoassets deposited and used as collateral for their «minting». The guarantee ratio is specified by your smart contract. Freeman Law can help you with digital currencies, tax planning, and tax compliance.