The Italian government published a document with cryptocurrency rules for all virtual asset service providers (VASPs) in the country.
While Italy is one of the less active countries in blockchain technologies, it seems to have a fairly unregulated market, which obviously needs a regulatory framework to keep the transactions transparent.
Based on the report published by a local newspaper Gazette, financial services providers that dabble in crypto will need to be enlisted into a special group of crypto providers. The rules were issued in accordance with the EU anti-money laundering directive, and the Financial Action Task Force (FATF) ruleset.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Web3? (Animated Explanation + Examples)
Likewise, according to the document, Italian legislators will eventually need to issue business licenses for crypto service providers so that they may operate in other countries in Europe.
In fact, the ruleset for crypto in Italy came right after the EU started discussing the Markets in Crypto-assets or MICA package proposal. With this package, the European Union seeks to standardize the crypto market by issuing a set framework for all VASPs in the region.
Even though these crypto rules in Italy were approved back in January, they are expected to be implemented in due time. However, Italy’s regulatory measures on crypto are slightly different in terms of the passportable license.
Italian law firm Lexia Avvocati explained the single difference that separates Italy’s crypto rulebook from the EU framework:
"VASPs that are incorporated in other EU member states will have to set up an Italian branch or subsidiary in order to operate with Italian customers."
In other words, Italy will require crypto service providers to have a brick-and-mortar establishment in the country if they want to be included in the special roster for VASPs.
The registration of crypto service providers in Italy is set to take place in the next three months.