Name
Global FinTech Guide
Country _ Name
Italy
SectionTitle
DLT and cryptocurrencies
Body
FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

In May 2023, legislative provisions were enacted to transpose the EU MiCA Regulation, on crypto-assets service providers, and the EU so called “Pilot Regime”, to amend the TUF and CONSOB’s regulations relating to the carrying out of investment services on security tokens and, broadly, by using the DLT.

The local market is therefore more prepared than in the past, although some concerns have been raised by COSNOB specifically, in relation to un-regulated ICOs.

Local regulators remain cautious about financing transactions based on virtual currencies. As highlighted by the Bank of Italy, virtual currencies should not be used in order to finance ICOs, due to their volatility, the price uncertainty and the impossibility for the regulator to fully supervise them. There is also regulatory pressure for firms dealing with virtual currencies to comply with anti-money laundering rules, particularly when those firms are able to convert.

Also, some recent cases of local platforms becoming insolvent, as well as news of US-based crypto-asset infrastructures going bust in 2023, might have affected the risk perception of Italian investors towards these assets.

In April 2024, the EU MiCA Regulation was further transposed under the Legislative Decree No. 128/2024 (so called “Decreto Capitali”), which set out among others the supervisory powers and competences of the Bank of Italy and CONSOB in the fields of virtual and crypto assets service providers, along with establishing the transitioning regime for the firms registered or to be registered with the OAM.


Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

Under Italian law, a statutory definition of virtual currencies can be found in the anti-money laundering legislation, which defines virtual currency as “digital representation of value, not issued by a central bank or a public authority, not necessarily linked to a fiat currency, used as a means of exchange for the purchase of goods and services, and transferred, stored and negotiated electronically” (Article 1, Paragraph 2, Point qq of Italian Legislative Decree no. 90 of May 25, 2017, which extended some of the anti-money laundering obligations to providers of services relating to the use of virtual currencies). In this regard, the Financial Information Office of the Bank of Italy recently warned operators subject to anti-money laundering obligations against the suspicious operations carried through virtual currencies and specified, on a non-exhaustive basis, operations in virtual currencies that operators should be particularly careful about.
Cryptocurrencies may have very different characteristics and serve different functions. In light of that, depending on the specific characteristics of the product, cryptocurrencies could be considered by competent authorities as financial products (or, in some specific circumstances, as securities), which are regulated products. In such cases the selling and/or offer of, or advice towards - among others, cryptocurrencies could be carried out only by entities or persons duly authorized by and enrolled with the competent authorities. This was confirmed by CONSOB, which in many recent decisions blocked the offering to the public of cryptocurrencies because the offering was carried out in breach of the statutory and regulatory framework applicable to financial products.

On the other hand, from a tax point of view, the Italian Tax Agency (Agenzia delle Entrate) issued Resolution 72/E of September 2, 2016 on the fiscal regime applicable to companies providing virtual currencies services. According to this resolution and in accordance with the case law of the European Court of Justice (C – 264/14 of September 22, 2015), the operations in bitcoin are exempted from VAT. In addition, recently the Italian Tax Agency clarified its position regarding the tax regime applicable to utility tokens (see Resolution no. 72/ E).

From 14 February 2022, a new regulation by the Ministry of Economic and Finance took effect, to set out registration and conduct requirements for providers in virtual currencies and e-wallet. This regulation tasked the OAM with the role of public register and governing body for those providers. Following the EU MiCA Regulation transposition and the enactment of “Decreto Capitali”, virtual and cryptoassets service providers will have to withdraw their registration with the OAM and apply for a MiCA license with the Bank of Italy or CONSOB, depending on the services provided. Pursuant to the Law Decree No. 95/2025, firms will have time up until 30 June 2026 to do that.

Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

The early stage transposing of MiCAR and of implementing the Co-Pilot Regime show a specific focus by local regulators on money-laundering risks and cybersecurity threats.


Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area

In Italy, the use of virtual currencies is relatively increasing amongst consumers and businesses. In this context, Bitcoin remains the most popular virtual coin among Italian users.

Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

CONSOB is increasingly detecting, and thus banning, firms offering investment services based on virtual currencies without being duly licensed, according to its Annual Report.

Specifically,  certain cases of abusive activities were fined by CONSOB in relation to cryptocurrencies. To ensure effectiveness of such fines, CONSOB has adopted different means of enforcement, relating to the specific breach(es).

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