PART 2. Legal regulation of cryptocurrencies and blockchain technologies in Germany and Italy

Photo from the sourceItaly is one of the few countries in the world where cryptocurrencies and blockchain technologies are regulated at the legislative level. In 2017, Legislative Act № 90 was issued, according to which service providers in the cryptocurrency market are classified as ordinary currency exchange operators. In other words, we can say that this document equates cryptocurrency with traditional currency. In addition, this Act directs the Ministry of Finance and Economy to issue a decree that would regulate the mechanism of operations with cryptocurrency, the work on which was completed on February 2, 2018. In it, the Italian government expressed the opinion that cryptocurrencies are the most suitable instrument among others for laundering funds obtained by criminal means and the financing of terrorism, in connection with which legal regulation should make it impossible to use them for criminal purposes. The regulation gives the following definition of cryptocurrency: it is a virtual currency used as a medium of exchange for goods or services. At the same time, cryptocurrency is not issued by the central bank and is in no way correlated with other currencies, therefore, it is not a means of payment.The document is available hereThe decree refers to the creation of a public register of service providers in the cryptocurrency market, in which they will need to register. In this case, registration is temporary, and therefore it will also need to be renewed at the end of the period. Such rules, according to the Italian government, will allow controlling the cryptocurrency market.An important issue remains the problem of taxation of transactions with cryptocurrency. In September 2016, the Italian Tax Agency issued a resolution clarifying certain aspects of the taxation of transactions with bitcoin and other cryptocurrencies, taking into account the results of the Hedqvist case by the Court…