Companies who have joined a new registration for crypto enterprises have stated that they have received regulatory permission in Italy, although they have not yet been examined for compliance. Italy may be allowing crypto companies to operate in the country without carrying out adequate investigations to ensure investor safety.
The companies were added to a registry established to verify compliance with the country’s anti-money laundering requirements.
The Organismo Agenti e Mediatori (OAM), an Italian supervisory agency that keeps a registry of financial agents operating in the nation, such as credit mediators and money changers, has been very active.
While regulators are typically chastised by the sector for slow application processing, Italy’s OAM has promptly welcomed 74 crypto companies, including the ones listed above, to its new roster of virtual currency service providers, which only debuted in May.
Francesco Dagnino, the managing partner at Lexia Avvocati, a Milan-based law firm, said:
“Italy is probably, as far as I’m aware of, the jurisdiction with the most simple process. It’s just a registration.”
Obtaining regulatory clearance or qualifying for registration with a local regulator indicates to investors that a firm has been inspected by the country’s appropriate authorities. However, the regulatory approval alluded to in these remarks may not bear the weight of certainty that it indicates in Italy.
According to Dagnino, the Italian registration process is very light in comparison to other jurisdictions in the European Union and does not require compliance with any specific requirements – such as operational integrity or anti-money laundering (AML) standards – for the purpose of registration.
In comparison, the Autorité des marchés financiers (AMF) in France requires enterprises to submit four distinct forms documenting activities, executive management, important shareholders, and internal AML measures in order to be included in the country’s similar crypto register. Some worldwide sites, including Binance and Crypto.com, have also qualified for AMF registration.
According to the Financial Action Task Force‘s most recent review, Italy’s present anti-money laundering procedures are wide and mature, but more effort is needed by supervisory agencies to ensure the legislative framework is successfully implemented by reporting organizations.
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