Cryptocurrency companies in Italy barred from business registration
Companies conducting business with cryptocurrency in Italy may soon be denied eligibility to register with the Government’s Business Register, which allows for multiple perks, including easier access to loans, and greater trust of customers.
The news first broke when societa a responsabilita limitata (SRL), equivalent of a limited liability company, was using an unlisted cryptocurrency in their business operations, which went against Italy’s Article 2465 that regulates financial business practices. According to this law, every company operating with anything other than the euro must be able to provide information regarding its proper value, and since the cryptocurrency the company in question was using has not been listed on any exchange, the court ruled it as being non-compliant with the current statute.
By operating a business through the use of an unlisted cryptocurrency, SRL did not fulfill the requirements of Article 2465. A cryptocurrency not listed on a major exchange cannot be assigned an accurate value, and is therefore not compliant with Article 2465, as it was provided in the court documents.
Other businesses utilizing cryptocurrencies in their operations were approved in the past for registration because the cryptocurrencies they used were listed on major platforms. Italy is just one of the many countries starting to take firmer regulatory actions on companies conducting business with the use of cryptocurrencies, which also seems to be a pattern of governments worldwide, not willing to lose on potential profits. Just earlier this year, in October, Italy’s neighboring Spain has introduced a new law requiring all citizens to disclose crypto assets as part of enforcement of the anti-fraud and anti-money laundering laws and also for taxation purposes.
Following G20 summit earlier this week, and discussions that took place there concerning cryptocurrencies growth, we should most likely expect more crypto-related regulations announced as soon as early 2019, experts say.