Italy Nullifies the Registration of Businesses Using Cryptocurrency

Businesses in Italy using cryptocurrency may no longer enjoy the benefits of a decentralized economy. Companies based on the crypto mechanism or employing cryptocurrency will not be eligible to register themselves with Business Register, according to a report.

The wheels started turning when an Italian Joint Stock Company named S.r.l (‘società a responsabilità limitata’) was discovered using unregistered cryptocurrency. The company had also 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”.

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”.

In other words, it questions why assets that have “uncertainty about confer-ability” and cannot be objectively verified are being allowed to be operated inside the territory.

As such, the company did not fulfill the requirements and was promptly rejected from candidacy. In response to the court’s statement that there wasn’t enough material provided to the registrar to approve of their candidacy, the company provided access to its credentials and passwords to the court.

It seems that the Italian courts have slowly started to realize the impact of cryptocurrency on the national economy. Because there is an inconsistency when it comes to trading in cryptocurrencies, primarily due to its volatile nature, the court felt that the nation needed better regulations in place to control and monitor how this new form of currency is operated on their soil.

This move follows a growing trend across the world and especially in Europe, where more and more countries are slowly but steadily starting to form legal guidelines on how cryptocurrencies should be traded and Blockchain operations are to be regulated within their economies while staying skeptical about their inflow and effects.

This decree would serve as a precedent when it comes to dealing with cases that will involve conferment of virtual currency, thus providing for the protection of creditors with due regulation in place.