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What we need to know about Crypto regulation in Italy

Italy is spearheading EU’s serious look into the realities of virtual reality via cryptocurrencies.

(July 17, 2020) — Italy is constantly in the news lately as it continues to reel from the rage of the coronavirus carnage. On the other hand, the Italian Government is getting its hands busy on the legislative table in a bid to regulate the domestic use of cryptocurrencies. The move for needed measures can be reflected on the following news headlines:

  1. Italian Bank offers Crypto trading to over A million customers amid coronavirus pandemic (Blockchain.news)
  2. Italy’s securities regulator shuts down 8 Crypto trading and Foreign Exchange sites (cointelegraph)
  3. 1.2 Million Italians can now buy Bitcoin from their bank (Bitcoin.com)

Regulating the Unregulated.

But since cryptocurrencies operate on a decentralized character, most crypto creators self-regulate. And when crypto-friendly countries do have forms of regulation to protect its investing citizens, they differ from one another. Italy has already had pre-pandemic efforts for development, reconciliation, and solutions to make the use of crypto parallel to the incumbent fiat.

Difficulty Lies in Terms.

Having to come up yet with specific crypto regulations, Italian authorities have sought the EU’s position on crypto assets as a benchmark, to begin with.

Refiner’s Fire.

On February 7, the Parlamento Italiano swiftly approved a bill submitted by the Senate last January 23 defining blockchain technology and distributed ledger technologies, or DLT. The crypto regulation bill to be known as “Decreto Semplificazioni” is now under the Agenzia per l’Italia Digitale tasked to create specific technical standards for the legal compliance of smart contracts.

Proof of Concept.

According to Statista, there are already 350 businesses in the retail and foodservice sectors who are accepting cryptocurrency payments, totaling 270 Italian retailers and 214 service providers for that matter. Economic powerhouse Northern Italy is responsible for more than half of the country’s economy and posts highest values of GDP per capita in all of Europe. Lombardy houses 149 stores that receive cryptocurrencies, or 18% of the total. Trentino-Alto Adige (South Tyrol) and Veneto are both hosts each to 12% of crypto-abled stores.

Conclusion.

Certainly, Italy has come a long way beyond proving itself the cryptocurrency hub of the EU. All it takes is putting an end to ambiguities via government regulation specifying cryptos. That can be a defining moment for Italy.

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