A lot of countries have been moving towards cryptocurrency adoption. But there’s one country bucking the trend: Italy rejects cryptocurrency for its businesses. Businesses in Italy may no longer enjoy the benefits of a decentralized economy. Companies using a crypto mechanism or employing cryptocurrency will not be eligible to register themselves with the Business Register.
Italy’s cryptofriendly status started unraveling when an Italian Joint Stock Company named Societa a Responsabilita Limitata (S.r.l) was discovered using unregistered cryptocurrency. The company had refused to register itself with the Business Register of Italy. This resulted in a conflict with the country’s legal stance regarding cryptocurrency : “All asset items must have a measurable economic value”.
Looking closely to another Italian law, Article 2465 of the Civil Code relating to conferment states:
“Those who confer assets in kind or credits should attach a report containing an indication of the evaluation criteria adopted and the attestation that their value is at least equal to that attributed to them for the purposes of determining the capital share.”
The law questions why assets that have uncertainty about conferability have the ability to be operated inside Italy. As such, the company did not fulfill the requirements of Italian law and was promptly rejected from candidacy for business registration.
In response to the court’s statement that there wasn’t enough material provided to the register to approve their business registration, the company provided access to its credentials and passwords to the court.
Italian courts have slowly started to realize the impact of cryptocurrency on the national economy. There is, however, as we all know, an inconsistency when it comes to trading cryptocurrencies – primarily due to its volatile nature. Therefore, the court’s felt that the nation needed firmer regulations in place to control and monitor how this new form of currency is operated on Italian soil.
The courts decision to require firmer and more resolute regulations follows a growing trend around the world, especially in Europe. More and more countries are starting to form legal guidelines on how cryptocurrencies can be traded and how Blockchain operations are to be regulated within their economies.
The decision by the Italian courts should be noted that this decision serves as a precedent when it comes to dealing with cases that will involve conferment of virtual currencies. This would primarily protect creditors.