How to obtain a crypto license in Italy?.
Italy is one of the prestigious European jurisdictions for registering your cryptocurrency project. Favorable economic conditions, advanced financial technologies, and business-friendly legislation create excellent conditions for implementing a cryptocurrency project. Moreover, this jurisdiction is well-suited for startups, as the costs involved in creation and maintenance are relatively moderate compared to competitor countries. It is worth noting that major projects like Binance, Crypto.com, and Kraken operate with a cryptocurrency license from Italy. So, why do these large projects choose Italy? Let’s delve into it.
Advantages of obtaining a crypto license in Italy
Among the main advantages of obtaining a cryptocurrency license in Italy, the following should be highlighted:
- Efficient and straightforward business registration process: Obtaining a cryptocurrency license in Italy can be faster and easier compared to other countries.
- Friendliness and support: A significant advantage for businesses is the opportunity to open accounts in Italian and European financial institutions and banks. The Italian government is generally crypto-friendly and supportive of such projects.
- Low requirements for crypto-related companies: The absence of minimum share capital requirements significantly affects the overall cost of setting up and maintaining a company in Italy.
- No residency requirements for beneficiaries, managers, and employees: This simplifies business processes and facilitates the creation of an efficient and competitive business structure. It allows for cost optimization and streamlines the employee recruitment process.
Requirements for obtaining a cryptocurrency license in Italy
To obtain a cryptocurrency license in Italy, a company must meet the following requirements:
- Any individual or legal entity not included in sanction lists can be a founder of the company.
- The company must comply with AML/KYC procedures and prepare mandatory AML documentation.
- The structure should have at least one director who can be a shareholder, and they must be a natural person. There are no specific requirements regarding residency, education, or experience.
- The structure should have a contact person for communication with the regulatory authority, the OAM. The director can also fulfill this role. It is advisable to engage a local service provider for communication with the regulator, including reporting.
- Mandatory quarterly reporting to the regulator, providing a summary of all transactions for each client, including the equivalent in euros, and the total balance of fiat and virtual currency for each client.
- Standard accounting practices: monthly payroll reports, annual financial statements, and filing tax returns.
Stages and timeline for obtaining a crypto license in Italy
The overall timeline for obtaining a cryptocurrency license in Italy is approximately 3-4 months and consists of the following stages:
- Preparation of documents for company registration: This process takes about two weeks and primarily depends on the availability of documents from the founders and the timely preparation of any missing information.
- Company registration and inclusion of data in the company registry: In our practice, this takes about a month after all the necessary documents have been prepared.
- Submission of documents for registration and review of the application by the regulator, concurrently with the preparation of Terms and Conditions and other policies required by European legislation: Typically, this process takes around six weeks.
- Opening a bank account: This takes about three weeks and depends on the individuals involved as founders and the risk appetite of the specific financial institution.
By obtaining a cryptocurrency license in Italy, you will have a fully operational company with permission to use cryptocurrencies, exchange fiat currency for cryptocurrencies and vice versa, exchange cryptocurrencies for other cryptocurrencies, conduct cryptocurrency transfers and clearing, as well as manage wallets for storing clients’ cryptocurrencies. If you need a cryptocurrency license in Italy, reach out to SBSB Fintech Lawyers. We have been specializing in supporting FinTech and Crypto projects since 2013, providing customized solutions for each client based on their business model. We will assist you in preparing the necessary documents to legalize your cryptocurrency business in Italy in accordance with the legislation, ensuring comprehensive legal support.