Italian Crypto Businesses to Register Under Proposed New Rules

The Italian government is seeking feedback on proposed cryptocurrency regulations intended to clarify the technology's use within the country.

A summary of the proposed rules explains how service providers that accept cryptocurrencies would have to report their business and earnings to the Ministry of Economics and Finance, as well as what the government will do with that information.

The full decree also clarifies that, while cryptocurrencies are "used as a means of exchange for the purchase of goods and services, [they are] not issued by a central bank or by a public authority, [and are] not necessarily connected to a currency having legal tender."

The main purpose of the decree is to enforce recently implemented anti-money laundering rules passed by the European Union, of which Italy is a founding member. In addition, it was prompted by new regulations on the financing of terrorism and other criminal activities.

To that end, businesses that transact with cryptocurrencies would be recorded on a new database by the Agency for Agents and Mediators.

As part of the feedback process, the government hopes to gauge the size of the domestic market for cryptocurrencies and the number of businesses working with them, according to the document.

Roberto Ciciani, director of the agency responsible for the prevention of financial crimes, stated:

"The census and the start of the register will also allow to better monitor compliance with the rules by the operators and give them certainty about the legal exercise of their activity ."

Interested parties within Italy have until Feb. 16 to weigh in on the subject, while the new rules will be implemented before July 2018. Existing service providers will only have 60 days from the decree’s implementation to register with the agency.

Note: Statements in this article were translated from Italian.

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