Central Bank of Italy: Using Virtual Currency "Must Be Considered Lawful Activity"

The Central Bank of Italy has published three directives on virtual currency, as reported by Bitcoin Magazine.

The directives contain some key points indicating a relatively positive stance toward Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term. Unlike in Russia where the use of virtual currencies has been (periodically) banned, Italy makes a point to state otherwise:

"In Italy the purchase, use and acceptance of virtual currency must be considered lawful activity: the parties are free to transact in amounts not expressed in legal tender."

In addition, financial institutions are allowed to deal in virtual currencies, just that they are advised to wait until formal regulations are announced. The best known counterexample is China, where a crackdown starting 14 months ago prohibited financial institutions and payment processors from such dealings, causing panic in bitcoin markets.

Furthermore, dealing in virtual currency does not require a business or exchange to employ AML/KYC procedures, which contrasts with FinCEN requirements in the US. In Italy, the standard AML/KYC procedures already in place for bank accounts would still have to be followed.

The Financial Intelligence Unit does warn that virtual currencies can be used for money laundering and terrorist financing, as already discussed by the European Central Bank (ECB).

Potential complications may arise if Italy's stance becomes incongruous with that of the broader European Union (EU) or other member states. The EU has been deliberating on Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term for quite some time with little progress to date. The matter has taken lower priority and may be complicated by the differing interests of individual states.