Italian Authorities Issue Bitcoin Warnings, Urge Regulation

bitcoin italy regulation

Three Italian institutions have issued new bitcoin warnings in recent days, calling for new legislation to eliminate loopholes and regulatory ambiguity.

The warnings come just weeks after Italian lawmakers met with a group of bitcoin advocates in a fact finding session. Soon after that, on 1st July, the successful No Cash Day event also saw bitcoin representatives advocating for the digital currency in parliament.

Bitcoin regulation urged

Speaking in an interview with Ansa.it, Attorney General of Rome, Luigi Ciampoli, warned that bitcoin could be abused by criminals engaged in money laundering, financing of terrorism, or mafia activities. He urged for regulation that would allow authorities to trace and identify all persons involved in digital currency transactions.

However, Ciampoli also made some relatively positive comments about bitcoin, saying that the system has its own charm and has the potential to simplify transactions.

Ciampoli stressed that the current legislative framework is vague and that the problem should be addressed by new, specific legislation.

He argued that the bitcoin system does not provide ample clarity and that it is difficult to identify subjects involved in bitcoin transactions, meaning the currency has potential be misused for illicit purposes. Ciampoli pointed out that bitcoin’s public ledger does not guarantee that each user can be identified, as new owners are identified by a numerical code, which is not a real identity.

The court, he said, would like to see precise and rigorous rules to counter crimes involving digital currencies. Furthermore, bitcoin offers an interesting new perspective, the legitimacy of which seems to solicit appropriate legislation to shelter operators from uncertainty and poor visibility.

Money laundering a concern

In a recent report on the Italian financial information system (FIU), the Bank of Italy also warned that bitcoin poses a potential risk and that it can be employed to circumvent money laundering regulations or funnel funds to terrorist organisations.

The FIU is currently examining bitcoin’s potential for illicit activities and looking at complaints involving suspect bitcoin transactions. Like Ciampoli, the bank warns that bitcoin transactions, while recorded in an online database, do not identify the parties involved in the transaction.

Italian Authorities Issue Bitcoin Warnings, Urge Regulation

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Source: Condesk.com

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