The Communication is addressed to companies with shares listed on the Stock Exchange or traded on multilateral trading platforms (issuers), audit firms and statutory auditors.

Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain cryptoassets (TFR) included CASPs among financial institutions obliged to comply with anti-money laundering (AML) obligations, in order to subject them to the more intensive AML controls provided for this category of entities. This differs from the previous legal framework, where virtual asset service providers (VASPs) were subject to less intense requirements and level of supervision, and is coupled with the adoption of Regulation (EU) 2023/1114 on markets in cryptoassets (MiCA) which sets a harmonized regulatory framework for CASPs.

The Italian implementation of the TFR amended the Legislative Decree 231/2007 (Italian AML Decree), assigning the role of AML supervisory authority for CASPs to the Bank of Italy.

The Bank of Italy has now issued a public consultation proposing to extend to this new category of market players both the Regulation on customer due diligence and the Regulation on organization, procedures and internal controls, which would entail CASPs being subject to rules already applicable to banks and other financial intermediaries, including but not limited to self-risk assessment exercises, reporting obligations to the Bank of Italy, the adoption of detailed policies and procedures, and the appointment of a senior manager responsible for AML.

See also our article Bank of Italy consults on the extension of its AML Regulations to CASPs.

It outlines the following:

• The Bank of Italy is the competent authority for prudential supervision of electronic money token (EMT) and asset-referenced token (ART) issuers and cryptoasset service providers (CASPs). With respect to CASPs, the Bank of Italy is also the supervisory authority in respect of anti-money laundering/counter-terrorism financing (AML/CTF).
• The Italian financial market authority, CONSOB (Commissione Nazionale per le Società e la Borsa), is  the competent authority for overseeing cryptoassets other than EMTs and ARTs and for transparency, fair conduct, orderly trading and protection of customers in relation to ARTs and cryptoasset services. It also has supervisory powers in relation to the prevention and prohibition of market abuse involving cryptoassets.
• A transitional regime from the current domestic virtual asset service provider

VASPs currently operating in Italy and enrolled in the Organismo per la gestione degli Elenchi degli Agenti in attività finanziaria e dei Mediatori creditizi (OAM) register should take into account the transitional regime provided by the MiCAR Italian Decree and take the necessary steps to apply for a CASP licence (either in Italy or in another EU member state) by 30 June 2025.

See our article for more on this development.

For more information, see our article on this update here.

The public consultations, available here and here (in Italian only), will be open until 22 March 2024.

See also: Crypto news: Italy launches two public consultations on draft decrees on MICAR and TFR

“Today’s announcement of co‑ordinated international action on cryptoassets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information,” Secretary-General Cormann said.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on cryptoasset reporting a reality. The international community can count on the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes to ensure that the tax transparency architecture remains both up-to-date and effective going forward.”

The Crypto-Asset Reporting Framework (CARF) is a key component of the International Standards for Automatic Exchange of Information in Tax Matters developed by the OECD under a G20 mandate. It provides for the automatic exchange of tax-relevant information on cryptoassets and comes against the backdrop of a rapid adoption of the use of cryptoassets for a wide range of investment and financial uses.