blockchain smart contracts in Italy
Innovation Challenge Workshop on Logistics and Distribution
8,9,10 May 2019, Palazzo Valle -Rome – Italy
Wednesday 8th of May 2019
Workshop on logistics and retails
14,45-15,00
The new rules on distributed ledgers and smart contracts in Italy: Potential of Blockchain Technology Application in the Food System (F. Sarzana di S. Ippolito, Lawyer, Adjunct Professor Uninettuno, Rome; National Strategy Blockchain Member- Italian Ministry of Economic
development)
The Ministry of Economic Development launched a public consultation setting out recommendations for the use of DLT and blockchain in a number of fields, including the regulatory banking and financial industry. The aim is to set out a competitive legal framework fostering investments.
On 18 June 2020, the Ministry of Economic Development published for public consultation a document containing recommendations on how DLT and blockchain may be applied to and improve the business in a number of fields, including the regulatory banking and financial industry (the “Recommendations”). The main Recommendations concern:
- FinTech and digital payments: fostering the developments of blockchain technology applied to payments in Italy would have a significant positive economic impact on the market and allow Italy to become an important hub at a global level in this industry.
- AML: the AML legal framework requires intermediaries to conduct AML checks vis-à-vis customers, including KYC. In this context, the blockchain technology may be used to trace and record the KYC carried out by an intermediary in order for other market operators to take advantage of such identification. The use of the blockchain would thus drastically reduce the time and cost to comply with KYC obligations. In this regard, the adoption of Self Sovereign Identity (SSI) solutions would also have a significant impact. Additional benefits may arise if the application of simplified customer due diligence measures were to be allowed under the applicable AML legal framework for crypto asset exchange transactions below a certain threshold. The thresholds currently provided with respect to e-money products may be used also in this case.
- Initial Coin Offering and Security Token Offering (ICO/STO): the lack of a harmonised framework at an EU level on this causes uncertainty and concerns among market players. To avoid any negative consequences for Italy in terms of international competition, both ICO/STO definitions should be clarified, ensuring a widely offering of them in the market. The Recommendations also suggest providing a definition of utility and security token. Please also see our previous newsflash.
- Cryptoassets:
blockchain smart contracts in Italy
