ITALY Law and Practice Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Studio Patti
for the establishment of formal legal wrappers for DeFi projects. Italian law does offer traditional legal structures – such as associations ( associazioni ) and foundations ( fondazioni ) – which could, in principle, be used to support governance or co-ordination func- tions in a DeFi context. However, especially due to crypto taxation rules and bureaucratic complexities, Italy has not emerged as a preferred jurisdiction for structuring DAO-like arrangements with a formal legal personality. In practice, Italian-based teams are more commonly involved in technical development activities, such as coding, protocol design and smart contract auditing. 5.3 Liability In Italy, the issue of accountability and liability in the context of DeFi remains largely unsettled, both at the judicial and regulatory level. To date, there is no case law and no notable enforcement actions specifically addressing harm caused by decentralised protocols. Payments in crypto-assets are permitted in Italy, sub- ject to the applicable regulatory framework. The legal treatment depends on the nature of the asset used and its classification under MiCAR or existing financial services legislation. Under MiCAR, EMTs are the category most clearly intended for payment purposes. EMTs are crypto- assets that aim to maintain a stable value by refer - encing a single official currency and are aligned with electronic money from a regulatory standpoint. As such, they are recognised as a legitimate means of payment, subject to a regime closely connected to the existing EU framework on electronic money. 6. Payments and Stablecoins 6.1 Payments From a practical standpoint, the use of crypto-assets as a means of payment in commercial transactions is not prohibited but remains relatively limited. Busi- nesses accepting crypto-asset payments must con- sider VAT implications, accounting treatment and compliance with applicable AML obligations. Where the payment involves an EMT issued by an author-
ised institution, the transaction benefits from a clearer regulatory framework. For other crypto-assets not qualifying as EMTs, acceptance as payment is a matter of contractual freedom between the parties. 6.2 Stablecoins 6.2.1 Fiat Currency and Algorithmic Stablecoins No response has been provided in this jurisdiction. 6.2.2 Stablecoin Regulation Under MiCAR, fiat-backed stablecoins fall predomi- nantly within the category of EMTs, defined as crypto- assets that purport to maintain a stable value by ref- erencing a single official currency, such as the euro. EMTs are conceptually aligned with electronic money, and their regulatory treatment reflects this proximity. However, rather than being simply absorbed into the pre-existing payments framework, EMTs are subject to a hybrid regime. On the one hand, MiCAR builds on the principles of the Electronic Money Directive (EMD2), particularly with respect to redemption rights, safeguarding of funds and issuer authorisation. On the other hand, it introduces additional, crypto-specific requirements, thereby creating a distinct regulatory layer tailored to blockchain-based instruments. Only authorised credit institutions or electronic money institutions may issue EMTs. Issuers must ensure that holders have a right of redemption at par value, at any time, and must implement robust safeguarding arrangements for the assets backing the tokens. In addition, EMT issuers are subject to obligations that go beyond traditional e-money regulation, including: • the preparation and publication of a crypto-asset white paper (subject to notification, not approval); • enhanced transparency and disclosure require- ments, including information on the functioning of the token and associated risks; • specific governance and organisational require- ments; and • ongoing supervision by competent authorities, including both conduct and prudential aspects.
349 CHAMBERS.COM
Powered by FlippingBook