As regulators around the world are seeing more contact with the cryptocurrency industry, they are inevitably incidences in which crypto firms are found to be in the wrong of established regulations. This has been particularly prominent with the Securities and Exchange Commission in the United States as they have shut down several ICO’s and have been forced to prosecute several people for crypto-related crimes. It is believed that as crypto becomes even more prominent, these incidences might be on the increase but are also indicative of better-implemented cryptocurrency-related laws.
It has been reported that authorities in Italy have shut down six foreign exchange trading websites and two crypto trading websites for violation of laid down laws.
The agency in question is the Commissione Nazionale per le Società e la Borsa (CONSOB) and the various websites were shut down for being in violation of Mifid2 and the Consolidated Law on Finance (TUF). Italy, in general, has been very proactive in the creation of domestic crypto laws as in 2016, a ministerial decision passed a European court of justice resolution in which cryptocurrency to fiat transactions would not be taxed but the profit or loss on those transactions would be subject to tax.
The Italian Senate committee on corporate office has also established regulations for IT and finance-related firms in which their financial transactions will be regulated by electronic means.
“Legislative Decree No. 90 of 2017 subjected virtual currency providers to the regulations established for traditional money exchange operators. To that effect, Legislative Decree No. 90 charged the Ministry of the Economy and Finance to issue a ministerial decree setting forth the modalities and timelines for the legal performance of such activities throughout the country.”
The former Minister of Economy and Finance Giulio Tremonti has also spoken on the place of fintech firms within the industry and has made it clear that they are changing the landscape of business and are challenging the dominance of traditional financial institutions.
“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,” he said during the Code4Future conference.