Italian Court Refuses to Register Companies Using Cryptocurrency

According to the latest reports from local news media outlets, Court of Italy now denies registering businesses that affiliated with cryptocurrency in any way. The reports read that no business in Italy will register in the Business Register if that company is in any sort based on cryptocurrency mechanism or allowing crypto exchanges.

The news releases after the controversial case arise by the Italian Joint Stock company, S.R.L. (società a responsabilità limitata). The company was not registered in the Business Register of Italy and was suspected reported of incorporating exchanges with a specific cryptocurrency which wasn’t listed in the official list of exchanges either.

This case shed light on several such companies who weren’t registered officially but were still exchanging the listed cryptocurrency. As a result, the government of Italy met a new set of rules as S.R.L. was the exception among the not censured companies, as it was trading a cryptocurrency which specifically was off the trading list among main exchanges.

The legal officialdoms addressed the issues by noting that, “all asset items must have a measurable economic value.” Moreover, a Civil code under Article 2465 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 to determine the capital share.”

Briefly, it states that the cryptocurrency which is only used on single platform shows uncertainty regarding the confer-ability of the assets. As a result, because the digital asset is not objectively verifiable, it doubts the operation of cryptocurrency in the country at all. Following the event, the court ruled out the policy that every business to register in the list of businesses will be examined beforehand about their involvement with the cryptocurrency sector.

In the case of S.R.L., the company was unsuccessful in providing sufficient proof adherent to their position in Business Register and the use of unlisted cryptocurrency. The court also emphasizes the need for improved and effective regulatory frameworks which are needed to handle cryptocurrency processes within the country territory.