Italy’s cryptocurrency regulations align with the FATF Financial Action Task Force Travel Rule. With the enactment of Legislative Decree No. 129/2024, Italy enforces robust compliance for Virtual Asset Service Providers (VASPs) through the Organismo Agenti e Mediatori (OAM). These measures integrate anti-money laundering (AML) and counter-terrorist financing (CTF) provisions to ensure transparency in cryptocurrency transactions.

1. Is cryptocurrency legal in Italy?

Yes.

Italian residents are legally permitted to own, buy, and sell virtual assets. The regulatory framework ensures cryptocurrency activities are conducted securely and transparently.

2. Are there any AML crypto regulations in Italy?

Yes.

Legislative Decree No.129/2024 mandates that VASPs register with the OAM and comply with AML and CTF requirements. These obligations include customer due diligence, transaction monitoring, and reporting suspicious activities.

3. Is the Crypto Travel Rule mandated in Italy?

Yes. Italy enforces the Crypto Travel Rule, requiring VASPs to collect and transmit identifying information for both originators and beneficiaries during cryptocurrency transactions, in line with FATF Recommendation 16.

4. Who regulates cryptocurrency in Italy?

Cryptocurrency regulation in Italy is managed by:

1. Organismo Agenti e Mediatori (OAM) for VASP registration and AML oversight.
2. Commissione Nazionale per le Società e la Borsa (Consob) and the Bank of Italy for monitoring crypto-market integrity and investor protection.

FATF Travel Rule Requirements in Italy

1. Are there licensing or registration requirements for VASPs in Italy?

Yes. VASPs must register with the OAM, providing detailed information about their operations, governance, and compliance mechanisms. This process ensures that VASPs adhere to AML and CTF regulations.

2. When did the Crypto Travel Rule go into effect in Italy? 

FACT CHECK

Italy has implemented the Financial Action Task Force (FATF) Travel Rule as part of the European Union's Markets in Crypto-Assets Regulation (MiCA). MiCA came into force on June 29, 2023, with provisions for crypto-asset service providers (CASPs) becoming applicable from December 30, 2024. Member States, including Italy, may allow entities providing crypto-asset services under national laws before December 30, 2024, to continue operating until they receive or are denied MiCA authorization, with a transition period extending up to July 1, 2026. However, Italy has opted for a shorter transition period, permitting operations until December 30, 2025. (Aosphere)

Additionally, the European Banking Authority (EBA) issued guidelines on July 4, 2024, specifying the information that should accompany transfers of funds and certain crypto-assets to comply with the 'travel rule.' These guidelines aim to enhance the traceability of transfers and combat money laundering and terrorist financing, taking effect on December 30, 2024. (European Banking Authority)

Therefore, in Italy, the Crypto Travel Rule is mandated from December 30, 2024, aligning with EU regulations and EBA guidelines.

3. Does Italy permit a grace period to comply with the Crypto Travel Rule?

Yes. The European Union's Transfer of Funds Regulation (TFR), which includes the "Travel Rule," was published in the Official Journal on June 9, 2023, and came into force on June 29, 2023. Crypto-Asset Service Providers (CASPs) were given an 18-month grace period to comply, making the regulation fully applicable from December 30, 2024.

Complying with the FATF Crypto Travel Rule in Italy

1. What is the minimum threshold for the Crypto Travel Rule in Italy?

Italy applies the Travel Rule to all cryptocurrency transactions, regardless of the transaction amount.

2. What personally identifiable information is required to be shared for the Crypto Travel Rule in Italy?

VASPs must collect and transmit the following information:

• Full Name
• Address
• Date and Place of Birth
• Nationality
• Account Number or Unique Transaction Identifier

3. What are the non-custodial or self-hosted wallet requirements in Italy?

Italy requires VASPs to apply the same AML and CTF measures to self-hosted wallets. Due diligence and suspicious activity reports are mandatory for these transactions.

Why Choose Notabene for Crypto Travel Rule Compliance in Italy?

Notabene simplifies compliance for VASPs operating in Italy with a comprehensive Travel Rule solution:

• Secure Data Sharing: Facilitate seamless data exchange while adhering to Italy’s stringent AML and CTF laws.
• Integrated Compliance Tools: Support for FATF Recommendation 16 and MiCAR-aligned regulations.
• Streamlined Implementation: Ensure operational compliance through automated processes, minimizing disruptions to your workflow.