Businesses in Italy using cryptocurrency may no longer enjoy the mainstream benefits of decentralized economy. According to the reports, companies based on the crypto mechanism or employing cryptocurrency will not be eligible to register their business with Business Register.
The news first broke out when an Italian Joint Stock company, named S.r.l (‘società a responsabilità limitata’) found using a specific cryptocurrency which was not registered in any of the main exchanges. Moreover, the company refused to register itself with the Business Register of Italy – although, several other companies already using cryptocurrency were never discriminated to do so. As a result, if the specific cryptocurrency is already listed across trading platforms, law enforcement wouldn’t censure – but the cryptocurrency used by S.r.l is listed under one platform which conflicts the assessment of the country’s economy. As per the legal bureaucracies addressing cryptocurrency “All asset items must have a measurable economic value’.
Furthermore, 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”.
It states that while cryptocurrency being used at only one platform has shown the “uncertainty about the confer-ability of the asset types”. However, the digital asset is not also verifiable objectively and hence it questioned why ambiguous assets can be operated within the territory.
Following the firm’s application, the court claimed materials that would need to examine the business and approve its commercial operation with Business Register. However, the firm failed to provide the sufficient materials and hence S.r.l would not be registered under Business Register. Since the cryptocurrency is decentralized in nature, it’s quite difficult to deal with businesses employing cryptocurrency within the nation. Furthermore, the court feels that the “improved regulatory frameworks” are needed to effectively handle crypto processes within the country.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com