From crowd funding business to cryptocurrency companies, foreign investors have started creating ventures in the fintech industry, as this sector is still in its early beginnings at this moment.
Even if there no specific legal framework which provides for the issuance of virtual money up to this point, cryptocurrency can be used in certain transactions in Italy.
But, one must obtain a crypto exchange license in Italy. Our company formation agents in Italy can offer information on how to open a cryptocurrency company in Italy.
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Types of activities available for cryptocurrency companies in Italy
Both companies and individuals who want to open a cryptocurrency company in Italy, must follow the company registration process which is quite simple. However, there are a few challenges which should be surpassed when choosing the activities of the company. Among the undertakings a cryptocurrency company carries in Italy are:
- • cryptocurrency mining activities;
- • cryptocurrency trading or investment activities;
- • accepting cryptocurrency payments;
- • creating cryptocurrencies through blockchain technology.
The main aspect to consider if you want to open a cryptocurrency company in Italy is the anti-money laundering regulations imposed by the local government and by international organizations. Our company incorporation agents in Italy can assist with the formation procedure of the company. Plus, they can help you apply for a crypto exchange license in Italy.
Registering a cryptocurrency business in Italy
The registration procedure of a cryptocurrency company is a standard one and implies preparing and filing the documents required by the Commercial Code with the Trade Register. The creation, use or sale of cryptocurrency is subject to crypto exchange license in Italy before starting the activities. Moreover, these companies must keep proper accounting records and file the necessary documents with the tax authorities.
The Fourth Anti-Money Laundering Directive in Italy
As mentioned above in the article, there is no specific legislation for cryptocurrency, but there is the anti-money laundering regulation for virtual currency transactions. This is called the Fourth Anti-Money Laundering Directive in Italy, which was included in Decree no.90 of 2017 and which mentions:
- There are risks related to the use of cryptocurrency, given that there is no legal framework. The anti-money laundering law and its implications must be respected.
- Emphasis is placed on private data in virtual currency transactions. Customers should benefit from security when using crypto exchanges. Compliance with the General Data Protection Regulation by the European Union is required.
- It also mentions the penalties for those who develop cyber attacks involving virtual currency. Imprisonment of up to 6 years is imposed for such crimes.
Therefore, those interested in a business in this field must also consider the rules mentioned above. You also need a crypto exchange license in Italy to be able to open a cryptocurrency company in Italy.
New decree for cryptocurrency in Italy
Ministry of Economy and Finance in Italy released a decree referring to the enrollment in a special section of those that offer cryptocurrency services in this country. Organismo Agenti e Mediatori or OAM is the institution that closely monitors the implementation of anti-money laundering laws, as well as virtual currency transactions in Italy.
Basically, everything related to digital currency, wallets, cryptocurrency providers, and attached services must be registered with the above-mentioned agency before any such operation. So, if you want to open a cryptocurrency company in Italy, you must consider registering with OAM, as mentioned in the most recent decree. We mention that our company formation agents in Italy are at your disposal with support for the formalities related to crypto exchange license in Italy.
What reporting is mandatory for cryptocurrency company in Italy
Service providers of cryptocurrency in Italy must comply with a set of reporting obligations, as follows:
- A report must be made and sent with all the virtual currency transactions in Italy, to OAM.
- The report must contain information about customers.
- It is necessary to mention the transactions made, as well as the exchange currency for each client.
It is important to note that cryptocurrency companies in Italy that do not register with OAM and start such activities may be sanctioned. Penalties can reach and even exceed EUR 10,000. But to make sure you follow the rules imposed in this area, we remind you that you can call on our local agents in Italy, if you want to open a cryptocurrency company in Italy.
Investing in Italy is a great opportunity for foreigners
If you want a stable and appreciated business destination, then Italy should be on your list. The “Made in Italy” brand is strong and has confidence in the market, so a business in this country is an excellent opportunity. Here are some facts about the economic direction of Italy:
- The total FDI for Italy in 2020 exceeded EUR 485 billion.
- Luxembourg is the largest investor in Italy, with over 19.8% of the total FDI registered in the same year.
- Business services and software & IT services absorbed the most foreign investments, 13%, and 12% respectively in 2020.
If you need information on the accounting requirements related to opening a cryptocurrency company in Italy, we also offer bookkeeping services, so do not hesitate to contact us. You can also rely on us for assistance in preparing the documents related to the Italian company formation process.