DEFINITION OF VIRTUAL CURRENCY

The Decree defines virtual currency as "the digital representation of value, not issued or guaranteed by a central bank or public authority, not necessarily linked to a legal tender, used as a medium of exchange for the purchase of goods and services or for investment purposes, and transferred, stored and traded electronically".

On the risks associated with virtual currencies, see the joint Bank of Italy-Consob communication: https://www.bancaditalia.it/media/comunicati/documenti/2021-01/CS_Congiunto_BI_CONSOB_cryptoasset.pdf.

WHO MUST REGISTER IN THE SPECIAL SECTION OF THE MONEY CHANGERS REGISTER

According to the definitions in the Decree, the following must register in the special section of the Money Changers Register:

1. Providers of services related to the use of virtual currency, i.e., any natural person or entity other than a natural person who provides third parties, in a professional capacity, including online, with 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;
2. Digital wallet service providers i.e., any natural person or entity other than a natural person who provides, to third parties, in a professional capacity, including online, private cryptographic key safeguard services on behalf of their clients to hold, store and transfer virtual currencies.

WHY REGISTRATION IS REQUIRED

Registration in the special section of the Register of money changers is necessary because, according to legislation, the exercise on the territory of the Italian Republic of services related to the use of virtual currency and digital wallet services is reserved to registered subjects.

Any exercise of such activities by subjects, in the absence of inscription in the special section of the Register, is considered unauthorized.

TIMING OF REGISTRATIONS

According to the Decree, operators who, on the date of the launch of the special section of the Register already conduct business, including online business, in the territory of the Republic and who meet the legal requirements, shall notify the OAM of their operations in Italy within sixty days of the launch of the Register, for the purpose of registration in the special section of the Register.

Such persons may continue to operate without having to wait for the OAM's ruling on registration in the Register.

In case of failure to comply with the 60-day deadline, or refusal of registration by the OAM, any exercise of the activity will be considered unauthorized.

REGISTRATION PROCEDURE

The OAM is responsible for verifying the regularity and completeness of the communication and attached documentation: within 15 days from the receipt of the communication, it either allows or denies registration. It may suspend the deadline once, and for a maximum of 10 days, if it considers the communication incomplete or deems it necessary to supplement the documentation. After the deadline has expired, if the required documentation is not received or is insufficient to address the identified critical issues, OAM denies registration in the special section of the Register, giving timely and reasoned notice to the interested party. In case of denial of registration, the interested party may still submit a subsequent application for registration.

Any changes in the declared data must be communicated within fifteen days of the change in the same data and in the same telematic way as for the first communication.

NECESSARY REQUIREMENTS FOR REGISTRATION

The following are the necessary requirements that must be fulfilled for registration:

1. for natural persons: 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 the territory of the Republic;
2. for persons other than natural persons: registered and administrative office or, for EU persons, permanent establishment in the territory of the Republic.

CONTRIBUTION FOR REGISTRATION

OAM Circular 41/22 provides for a one-time payment of a fee to meet the costs of setting up, developing and maintaining the system, differentiated between individuals and non-individuals:

1. natural persons: 500 Euro;
2. subjects other than natural persons: 8.300 Euro.

In addition, there will be an annual fee, to be applied in consideration of the operational size of service providers related to the use of virtual currency and digital wallets, resulting from the number of clients reported under Article 4, paragraphs 2 and 3, of the above Circular. This amount will subsequently be communicated by the Body by means of an appropriate supplement to Table "A" of OAM Circular 41/22.

REGISTRATION TO THE OAM WEB PORTAL

The registration service to the Body is available at www.organismo-am.it. Once the registration is completed, the user will have his own private area, with restricted access with password, chosen by the user himself, within which he will be able to use the online services made available by the Organism.

The user, in order to communicate the operation on the Italian territory and proceed with the registration in the Register, must, therefore, complete the registration and subsequently use the dedicated service, available in his own private area: fill in, digitally sign and send the appropriate computer form.

WARNING:

"Registration" to the web portal of the Body is NOT equivalent to the communication of operations in Italy for registration in the Special Section of the Register of Money Changers (Register of Virtual Currency Operators), to carry out which it is necessary to fill out the appropriate service available in the private area, after completing the "Registration" itself.

A certified electronic mailbox (PEC) is required for registration to the portal, which is already active at the time of registration.

For any other information, please refer to the User Guide published on the Body's portal (click here).

APPLICATION (NOTICE OF OPERATION)

All persons who intend to carry out the activities indicated by the decree in Italy, including online, must communicate, for the purpose of registration in the Register: their personal data (of the company, in the case of legal persons, including personal data of the legal representative), tax identification, identification document details, a certified electronic mail (PEC) address, the type of activities and services provided, the way the service is carried out (physical locations, ATM, web addresses).

A copy of the identification document of the person performing the communication and, in the case of a person other than a natural person, the legal representative as well as an updated chamber of commerce survey should be attached to the communication.

HOW TO SUBMIT APPLICATION DATA

Communication to the OAM is an essential condition for the legal exercise of activity in the territory of the Republic by service providers related to the use of virtual currency and providers of digital wallet services.

The notification must be accompanied by a copy of the identification document of the person making it and, in the case of a person other than a natural person, of the legal representative, as well as an up-to-date Chamber of Commerce certificate.

The notification for registration should be made electronically to the OAM using the service in the dedicated private area of the Body's portal.

For any other information, refer to the User Guide published on the portal of the Body (click here).

QUARTERLY REPORTING ON OWN CLIENTS' OPERATIONS

Registered traders must transmit to the OAM, electronically, data on transactions carried out in the territory of the Italian Republic.

Transmission must be made quarterly, no later than the 15th of the month following the quarter in question.

Specifically, the client's identification data (surname and first name, place and date of birth, residence, tax code/VAT number, where assigned and details of the identification document) and summary data on overall operations in Italy per individual client will have to be transmitted.

The following information must be sent electronically to the OAM in detail:

Client identification data:

1. Name and surname;
2. Place and date of birth;
3. Residence;
4. Tax identification number/VAT number, where assigned;
5. Details of ID document.

Data on overall operations by individual client:

1. 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;
2. 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;
3. number of conversion transactions between virtual currencies referable to each customer;
4. 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;
5. 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.

TECHNICAL MODALITIES FOR SUBMITTING QUARTERLY REPORTS

Information about technical modalities will be made available on the Body's portal, along with the publication of a specific and appropriate Operational Manual.

PUBLIC NATURE OF THE REGISTER

The OAM shall take care of the clarity, completeness and public accessibility of the data entered in the special section of the Register.

The special section of the Register shall record the following: surname and first name of the provider of services relating to the use of virtual currency or the provider of digital wallet services who is a natural person or the company name and registered office or the registered office of the permanent establishment in the territory of the Republic in the case of a person other than a natural person; tax code or VAT number, where assigned; indication of the type of service provided; address of the physical points of operation, including any automated teller machines (ATMs), and/or the web address through which the service is carried out.

COOPERATION OF OAM WITH INSTITUTIONS

The OAM, upon request, is required to provide the Ministry of Economy and Finance, the sector supervisory authorities, the Financial Intelligence Unit for Italy, the Guardia di Finanza ("Financial Police"), and the National Anti-Mafia and Anti-Terrorism Directorate with any information and documentation held by virtue of managing the special section of the Registry, including data on the clients of operators who have made transactions in Italy.

For the purpose of combating illicit activities, the Special Currency Police Unit of the Guardia di Finanza and the police forces may request from the OAM data and information on service providers related to the use of virtual currency and digital wallet service providers, including those related to entities that have not properly integrated the communication to the Body.

Every six months the Body shall submit to the Ministry of Economy a report with aggregate data on the number of service providers related to the use of virtual currency and digital wallet services that have made the communication for registration in the special section of the Registry, including those related to entities that have not integrated the communication as required. The report should also contain the type of services carried out by the providers, the cases found of abusive activity, and the aggregate data on the transactions carried out transmitted to the OAM.

SANCTIONING POWERS

The OAM is vested with the powers of suspension and removal from the special section of the Register. In particular, it has the power of suspending, not less than three months and not more than one year, from the Register in case of violation of the obligation to report quarterly data. On the other hand, deletion is foreseen for: loss of one of the requirements for carrying out the activity; repeated violation of the data reporting obligation; inactivity lasting for more than one year unless proven reasons are given; and termination of the activity.