Cryptocurrencies are being included in Italian and European legislation, upon cryptocurrencies being universally recognised as a phenomenon.
Italy was the first European country to create legislation for cryptocurrencies, through defining the virtual currency exchanger, the exchanger.
The legislative decree on the 25th March 2017, implemented the IV directive of European anti-money laundering, came into effect on the 4th July in 2017, and has introduced the concept of cryptocurrencies into our legislation, classifying in particular those who habitually use cryptocurrencies for work purposes.
The exchangers as a service, has the principal
function of exchanging between "virtual currencies and
traditional currencies."
When providing this type of work they are subject to anti-money
laundering laws, according to Italian law they have to obtain a
license and be listed in a special register. The authorities have
to be notified of their presence in the territory.
The exchanger represents the link between the
traditional market and the new market of
cryptocurrencies, but since it operates in the traditional
financial market it is subject to its rules.
The first ruling on "cryptocurrencies"
Ruling no.195 on the 24th January, made by the
Second Civil Section of the Court of Verona, was significant as
cryptocurrencies were at the heart of the
discussion.
The plaintiff sued an IT service company which was meant to open an
account, a wallet in
Bitcoin, but failed to create a wallet despite
receiving the necessary money in traditional currency.
The acquisition of Bitcoins was prior to a crowd funding
operation.
The judge established that an online contract between the
parties implies the exchange between real money and virtual money,
which represents a financial service or rather a "a
paid service."
Bitcoin is seen as a "financial
instrument."
The IT service firm having not fulfilled its obligations according
to the "distance contract" (ex art. 50
of the Consumer's Code – D.lgs. 6 September 2005, n.206)
and having breached its legal obligations according to the
"form and pre-contractual information"
(artt. 67-duodecies ss. cod. cons.), was sentenced to return what
it had received.
The sentence tell us that when one proceeds to change between traditional and virtual currencies, the client has the right to be informed in a transparent manner as to what the exchange entails, otherwise the contract is annulled.
Cryptocurrencies and taxes
Cryptocurrency profits are currently
exempt from regulation and from taxes, therefore
regulation should be based on pre-existing rules in this field,
which are adapted to the case.
The Internal Revenue Service which seemingly tends to treat
cryptocurrencies as if they were a foreign currency (ris.
72E/2016), and so would become the object of taxation only above a
certain threshold.
In Europe however, with the consent of the BCE one considers
cryptocurrencies a true means of payment (sentence "C-264/2015
CGEU").
One can declare the capital gains attained with the
cryptocurrencies via the "Unico Persone Fisiche" (tax
return form), above all if one knows the bitcoins acquired are kept
abroad in another country.
If there is any doubt, or if one fears that future capital gains
obtained from speculation with cryptocurrencies could be taxed, it
would seem fitting to turn to an expert in the sector.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.