What happened to cryptocurrency: Italy’s securities regulatory body has shut down the operations of two crypto investing and derivative sites and six foreign exchange websites for providing illegal products and services.
The Finance Magnates reported that the Commissione Nazionale per le Societa e la Borsa (CONSOB) had allegations against the affected websites.
CONSOB accused these eight foreign exchange websites of infringements upon the Mifid2 and the Consolidated Law on Finance (TUF) for the provision of illegal trading products and services.
Crypto regulation in Italy
In a bid to ensure the security of investors, the Italian authorities set out to establish domestic cryptocurrency regulation. A ministerial resolution in 2016 put into action a European Court of Justice resolution.
The resolution stipulates that transactions involving the exchange of crypto assets against fiat money would not be subject to taxation. However, profit and losses on these transactions should be taxed.
Italy’s Senate Committee on Corporate Affairs also worked to come up with legislation. It aims at creating a guideline for the regulation of all financial and IT-related firms’ transactions by electronic means.
Where is the future of crypto headed in Italy?
At the Code4Future conference, Former Italian Minister of Economy and Finance, Giulio Tremonti, offered his thoughts on the future of digital payments and cryptocurrencies’ advent. He participated in a round table discussion at the event.
Tremonti believed that the possibilities offered by the fintech sector were revolutionizing both business philosophy and the role of traditional banks. He said,
“Banks may be caught off-guard by fintech activities. An alliance between traditional banks and new digital industries is essential. A structure that incorporates new techniques but maintains old values.”Tremonti
Tremonti also granted an interview with Cointelegraph sharing his opinion on decentralized digital money like Bitcoin. He said,
“It’s the future, and you cannot stop it. However, Bitcoin does not have a clear legal status, and this is an obstacle. According to accounting rules, it’s an asset you should put on your financial statements. But if it’s an asset that you should put on your financial statements, should VAT be applied when it is sold? It is still an area of great uncertainty.”Tremonti
You can also read about what happened to cryptocurrency here