Italy grants regulatory approval to over 70 crypto firms without proper checks


Despite multiple governments and regulators taking an exceptionally careful and even skeptical approach to cryptocurrency industryEarning them criticism in the industry, Italy appears to be subjecting crypto firms seeking approval to operate on its soil to less scrutiny than other countries.

In fact, Italy has obtained regulatory approval for 73 crypto companies, including base of coinsCrypto.com, and Binancein a relatively short period, from May 2022, as CoinDesk Handagama Sandal reported 5th of October

This means that these companies are now part of the country’s registry, indicating that they comply with Italian anti-money laundering (AML) standards. exchange register, thrown out on May 18, it is administered by the Organismo Agenti e Mediatori (OAM), the control body that also maintains lists of financial agents and credit brokers.

Approval without scrutiny

That said, the authority admitted CoinDesk that it was not yet sure of the ways to collect the relevant information from the crypto companies that were added to the registry and that it might not start doing so before 2023.

In other words, the crypto companies on the registry are currently not being scrutinized nor their fund flows controlled despite the legal requirement to be registered with the OAM in order to continue their activities in Italy.

According to Francesco Dagnino of the Lexia Avvocati law firm, which handled some of these requests:

“Italy is probably, to my knowledge, the jurisdiction with the simplest process. It’s just a record.”

The only requirement demanded of companies requesting to be added to the list so far is to provide 10 pieces of information that include the name of the company, email address, web address, tax or fiscal code, as well as any physical point of operation such as crypto ATMs.

In addition, applicants must provide a “registered address and, if different from the registered office, the administrative office or a “permanent establishment” in Italy if their office is in another EU state, as the OAM said. CoinDesk.

Stance towards cryptocurrencies in the EU and other jurisdictions

On the other hand, the European Securities and Markets Authority (ESMA) has declared that cryptocurrencies are a potential threat to financial stability due to their volatility and lack of regulation, as expressed in a recent report.

In addition, the president of the European Central Bank (ECB), Christine Lagarde, has warned that cryptocurrencies present an obstacle to the role of central banks acting as an “anchor” of the economy, while digital assets could usher in the era of free banking.

Recently, the UK regulator the Financial Conduct Authority (FCA), hit back at critics about its handling of licenses for new crypto operators, stating that its strict measures are part of its standards similar to other jurisdictions.

Meanwhile, Japanese regulators are stepping up initiatives to regulate the use of cryptocurrencies in criminal activities by introducing new remittance laws that will prevent criminals from using crypto exchanges to launder money, like Finbold reported.