Cryptolicense in Italy: Compliance Made Clear

Known for its rich cultural heritage and economic progress, Italy has also become a prominent player in the global cryptocurrency market. As such, Italy has embarked on the path of creating a comprehensive regulatory framework that takes into account the unique challenges and opportunities presented by cryptocurrencies.

The main act that regulates the activity of VASP is Decree 13 January 2022 by Ministry of Economy and Finance (VASP Decree).

Both the Italian Ministry of Economy and Finance (MEF) and the Organization of Agents and Brokers (Organismo Agenti e Mediatori (OAM)) are playing a vital role in the cryptocurrency sphere. Those wishing to operate as a VASP must register with a special registry (Register of money changers) maintained by the OAM.

It is necessary to register in the Register of money changers maintained by the OAM

Key Numbers about Cryptolicense in Italy

€500

one-off registration fee for VASPs who are natural persons

€8,300

one-off registration fee for VASPs who are other than natural persons

26%

capital gains tax (CGT) on virtual currencies

€1,500

annual fixed registration fee for persons other than natural persons

up to 43%

personal income tax (PIT) rate

24%

corporate income tax (CIT) rate

Legal Opinion about Cryptolicense in Italy

Ganna Voievodina

Manimama, CEO

"Getting a cryptolicense in Italy is an great solution for companies aiming to conduct legal and trustworthy activities in the sphere of cryptocurrencies and the blockchain technology. Doing so ensures legitimacy, credibility and opportunities for growth and development in the dynamic financial technology sector. Do not lose time and contact the Manimama team if you want to go through the process of obtaining this license efficiently and easily".

Types of Activities with a License

Services related to the use of virtual currency: services functional to the use, exchange, storage of virtual currency and their conversion from or into legal tender or digital representations of value, including those convertible into other virtual currencies as well as the services of issuing, offering, transferring and compensating and any other service functional to the acquisition, trading or intermediation in the exchange of the same currencies (e.g. execution, reception, transmission of currency orders virtual on behalf of third parties, virtual currency placement services, consultancy services on virtual currencies).

Digital wallet service: private cryptographic key safeguard services on behalf of clients to hold, store and transfer virtual currencies.

Choose the Package of Services

Advanced

Set up of company ready to start cryptocurrency operational activity

€12,000

  • Company formation in Italy
  • OAM application
  • Individual AML/KYC policies
  • Legal address of the registered office
  • Handling the communication with Organismo Agenti e Mediatori (OAM)
Order now

Basic

Creating the company and registration of VASP

€10,000

  • Company formation in Italy
  • OAM application
  • Standard AML/KYC policies
Order now

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Step by Step Description

Step 1. Initial setup

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Registration as a VASP

    If you want to register as a legal entity, you must do the following:

    1. Have a registered company

    2. Register to the OAM web portal, use the service in the dedicated private area of the portal and send an electronic application (communication) in a satisfactory form to the OAM stating the following:

  • name of the company
  • the legal form of the company
  • tax code/VAT number, if assigned
  • the registered office and, if different from the registered office, the administrative office; for entities with registered office in another member state of the EU, the location of the permanent establishment in Italy
  • surname, name, place and date of birth, tax number, if assigned, and details of the identification document the legal representative
  • certified e-mail address for communication between the provider and OAM
  • indication of the type of activity performed as a service provider (services related to the use of virtual currency and/or digital wallet service)
  • indication of the type of services listed in Annex 2 of the Decree 13 January 2022
  • the means of carrying out the service, indicating the number and address of the physical points of activity, while including any ATMs (automated teller machines) and/or online business, indicating the web address through which the service is carried out
  • 3. The application shall be accompanied by a copy of the document identifying the legal representative, as well as the company’s statutory documents

    4. Italian VASPs are subjects to local AML/CFT laws of Italy. Therefore, before VASPs can begin their operations, they need to put in place all the mechanisms, procedures and controls necessary to ensure compliance with these regulations.

Duration: after checking that the information provided is correct and complete the OAM will either allow or deny registration within 15 days of receipt of the communication

Understanding Italian Requirements

Registered persons are required to report their clients' transactions on a quarterly basis to the OAM

VASPs are required to send electronically to the OAM data on transactions carried out in Italy to comply with the Italian AML requirements.

The transmission must be made quarterly, no later than the 15th day of the month following the reporting quarter.

In particular, such data must be transmitted:

1. Customer identification data (name and surname, place and date of birth, place of residence, tax code/VAT number, if assigned, and identity document data)

2. Summary data on total transactions in Italy for each individual customer:

  • countervalue in euros, as of the last day of the reference quarter, of the total balance of legal currencies and virtual currencies referable to each customer
  • number and total euro countervalue, as of the last day of the relevant quarter, of legal-to-virtual and virtual-to-legal currency conversion transactions referable to each customer
  • number of conversion transactions between virtual currencies referable to each customer
  • number of outgoing and incoming virtual currency transfer transactions to/from the service provider related to the use of virtual currency referable to each customer
  • number and countervalue in euros, as of the last day of the reference quarter, of the amount of outgoing and incoming legal tender transfer transactions from/to the service provider related to the use of virtual currency, referable to each client and broken down by cash transfers and traceable instruments
  • Requirements for VASP Authorization in Italy

    For subjects other than natural persons it is required to have registered and administrative office or, for EU persons, permanent establishment in the territory of Italy

    If you want to register as an natural person, you must have Italian citizenship or citizenship of a European Union State or of a different State according to the provisions of the Consolidated Immigration Act, and domicile in Italy.

    If you want to register as a subject other than natural persons, you must have registered and administrative office or, for EU persons, permanent establishment in the territory of Italy.

    Italian VASPs are subjects to local AML/CFT laws of Italy. Therefore, before VASPs can begin their operations, they need to put in place all the mechanisms, procedures and controls necessary to ensure compliance with these regulations.

    Registration fees are as follows (payment must be done no later than 5 days after sending the application for registration):

  • for natural persons - €500
  • for subjects other than natural persons - €8,300
  • Annual fees comprise the following:

    1) fixed fee:

  • natural persons - €200 (4 quarterly installments of €50 each)
  • subjects other than natural persons - €1,500 (4 quarterly installments of €375 each)
  • 2) variable fee:

  • for natural persons - €0.08 per customer (record)
  • for subjects other than natural persons €0.08 per customer (record)
  • In the case of transmissions with a number of customers from 1 up to 500, a deductible of €40 is applied for the variable portion of the corresponding reference quarter.

    Taxes in Italy

    Capital gains from virtual currencies are taxable in Italy at a rate of 26% if they are equal to or exceed €2,000

    Corporate Income Tax (CIT) - resident entities are subject to corporate tax (IRES) of 24% on its worldwide income; they are also subject to tax on regional production (IRAP), which is generally levied at a prime rate of 3.9%.

    Value Added Tax (VAT) - in Italy, VAT is known as Imposta sul Valore Aggiunto (IVA). The standard rate of VAT in Italy is 22%, but there are also two reduced rates of 10% and 5%, as well as a super reduced rate of 4%. The threshold for VAT registration for resident businesses in Italy is €85,000. Therefore, any business exceeding this limit must register for VAT.

    Capital Gains Tax (CGT) - a capital gain from virtual currencies is taxable in Italy at a rate of 26% if it amounts to or is greater than €2,000. These gains are considered "miscellaneous income" for tax purposes. This kind of taxation applies to profits derived from:

    • Exchange of virtual currencies into euros
    • Exchange of NFT into another virtual currency
    • Purchasing goods or services with virtual currency

    Personal Income Tax (PIT):

    • €0 - €28,000 - 23%
    • €28,000 - €50,000 - 35%
    • above €50,000 - 43%

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