The wind of regulation is blowing louder in Italy.
The Xriba Association obtained a copy of the ministerial decree signed by Minister Daniele Franco. Let us now look at the main point of this new decree.
The decree’s primary recipients are any natural person or subject other than a natural person who provides services of cryptocurrencies exchange and storage, as well as conversion from or into legal tender currencies. Furthermore, providers of private cryptographic key safeguard services are subject to this new decree.
The decree establishes the registration in the OAM register (agents and mediators body), a public institution that manages the Lists of Agents in Financial Activity and Credit Brokers in Italy, as a necessary condition to operate legally in Italy.
As a result, all exchanges and wallet providers operating in Italy will be monitored by the OAM and all data collected about providers will be sent to the ministry six-monthly.
The eventual exercise of providers’ activities without registration with the OAM registry is considered abusive.
The exchanges and wallet providers will have up to 90 days from the date of the decree’s publication to register, and if they do not register, they may be obscured and made inaccessible to users connected from Italy.
The publication of this decree, however, will have an impact on all Italian users, not just providers. In fact, registered providers will be required to communicate to the OAM every quarter a large amount of user data that was previously unavailable from government institutions.
In addition to all identity data of users the following information will be communicated by providers to the OAM:
- Total balance of legal tender currencies and cryptocurrencies.
- Number and total balance of conversions from legal tender to cryptocurrencies and vice versa.
- Number of crypto to crypto conversion operations.
- Number of cryptocurrencies transfer operations incoming and outgoing.
- Number and total value of legal tender currency transfer operations incoming and outgoing.
The turning point is that these data will not be limited to the OAM, but the institution will be required to share them with the minister and tax authorities upon request.
The flow of data between OAM and tax authorities will not be regular as a result, but there is no limit to the number of requests.
Already today, it is mandatory in Italy to declare the possession of cryptocurrencies, and non-declaration can result in sanctions, but until now, there was no way for authorities to verify citizens’ possession; now, everything changes.
Taxation is making its way into the blockchain world, which is currently unprepared.
Because of the complexities of blockchain transactions and all of the use cases for cryptocurrencies, it is impossible to track and catalogue transactions without the use of specialized software. The risk is to fill out declared documents incorrectly, resulting in higher taxes or even worse fines.
If the development of cryptocurrency accounting software seemed postponed and premature in the past, it is now an urgent matter in Italy.
Thanks to the Xriba Association the solution is on the way; the new Xriba service, CriptoBooks, will be available in a few months. It is a platform that will allow you to connect your exchange and wallet accounts and will automatically calculate your capital gain by providing all of the data and information required to complete your tax return.
Stay connected by subscribing to our channels to be among the first to take advantage of the launch offers.