Italy Crypto News: Binance’s Europe strategy seems to work out perfectly
Background
In July 2021, the use of Binance was banned in Italy by La Commissione Nazionale per le Società e la Borsa (“CONSOB”) due to the complexity and the volatility of cryptocurrencies to protect the public from investing in these risky assets and preventing the deployment of such technologies in the illicit finance.1
Italian Companies and Exchange Commission, CONSOB, has highlighted the importance of informing citizens about the volatility, opacity, and risks associated with cryptocurrencies.2 For this reason, right after warning the citizens regarding the risks, it preferred to proceed with the banning sanction to protect the citizens.
However, since banning Binance in a particular territory nearly means banning the use of cryptocurrencies due to the company’s dominance in the market3, an adaptive approach from the regulators was expected.
Parallel to that, on February 18, 2022, Organismo Agenti e Mediatori (“OAM”) has declared that the service providers whose services are related to the use of virtual currency and digital wallet services and who wish to continue to operate in Italy are asked to be registered by May 18, 2022.4
OAM, whose title can be translated as the Institution of Agents and Mediators in English5, is the exclusive and independent Italian authority for the management of the lists of agents in financial activity, money transfers, credit brokers, and money changers, and gold exchangers.6 OAM now controls the lists of the subjects that carry out the activity of conversion of virtual currencies into legal tender, so-called exchangers, with the Decree issued by the Italian Ministry of Economy and Finance (“MEF”) on January 13, 2022.7
In this piece, we’ll analyze the latest affairs in the crypto ecosystem in Italy and its general stance toward these emerging technologies.
What has happened? – “Clear and effective regulation is essential for mainstream adoption of cryptocurrencies.”—says Binance CEO
Italy is said to be a country where accelerating the adoption of emerging digital technologies is set as a priority.8 Italy has confirmed its priority list by granting approval after less than a year after the ban and letting Binance legally operate in the territory of Italy.
As of May 27, 2022, the crypto exchange giant declared that Binance has now registered with OAM.9 As the registration in France and the licensing efforts in Germany have been accompanied by Italy’s regulatory approval, it is shown that Binance’s European strategy seems to continue to be in force and effect in the region, as we have highlighted in our previous posts.
There are 14 crypto platforms with Binance, legally operating in Italy currently, and OAM confirms that there are 28 applications pending now.10 Time will show how the approval procedures go for the other companies and how the crypto ecosystem will evolve in Italy.
The OAM’s approval allows Binance to offer crypto products to customers in Italy and expand its Italian team.11 Following the approval, Binance, and other registered companies are now required to provide reports regarding the operations in Italy and the operational summary of each customer to OAM on a quarterly basis.12
The efforts for regulatory compliance and licensing shown by CEO Chapeng Zaou prove his words: “Clear and effective regulation is essential for mainstream adoption of cryptocurrencies.”
What’s next?
After the second approval in Europe, two of them from the founding sixes of the European Union, Binance seems to spread its root in Europe. Thus a number of approvals/licenses from European states and maybe even from European Union institutions can be expected. Binance has said Bonjour and Ciao to its European users; for now, we will see if Hallo will be the next.
Guidi, Stefano: The Italian regulator has blocked consumers from investing in crypto through Binance on all its platforms, July 15, 2021, accessed via https://markets.businessinsider.com/news/cryptocurrencies/italy-regulator-cryptocurrency-bans-binance-trading-exchange-2021-7 on June 9, 2022.
Guidi, Stefano: The Italian regulator has blocked consumers from investing in crypto through Binance on all its platforms, July 15, 2021, accessed via https://markets.businessinsider.com/news/cryptocurrencies/italy-regulator-cryptocurrency-bans-binance-trading-exchange-2021-7 on June 10, 2022.
Guidi, Stefano: The Italian regulator has blocked consumers from investing in crypto through Binance on all its platforms, July 15, 2021, accessed via https://markets.businessinsider.com/news/cryptocurrencies/italy-regulator-cryptocurrency-bans-binance-trading-exchange-2021-7 on June 10, 2022.
OAM, The Register of Cryptocurrency Traders to be Operational by May 18, accessed via https://www.organismo-am.it/en/news-home-page-en/1485-oam-the-register-of-cryptocurrency-traders-to-be-operational-by-may-18 on June 10, 2022.
Cointelegraph, Italy News, accessed via https://cointelegraph.com/tags/italy on June 9, 2022.
OAM, Protocol of Understanding Between The Italian Financial Police and OAM, accessed via https://www.organismo-am.it/en/protocol-of-understanding-between-the-italian-financial-police-and-oam on June 9, 2022.
OAM, Protocol of Understanding Between The Italian Financial Police and OAM, accessed via https://www.organismo-am.it/en/protocol-of-understanding-between-the-italian-financial-police-and-oam on June 9, 2022.
Donna, Massimo/ Bianchi Chiara: Blockchain & Cryptocurrency Laws and Regulations 2022 I Italy, accessed via https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/italy on June 10, 2022.
Binance, Binance obtains regulatory approval in Italy, May 27, 2022, accessed via https://www.binance.com/en/blog/ecosystem/binance-obtains-regulatory-approval-in-italy-421499824684903920 on June 9, 2022.
Thomas, David: Binance Returns to Italy With Regulator Approval—Now What? May 28, 2022, accessed via https://beincrypto.com/binance-returns-to-italy-with-oam-approval/ on June 10, 2022.
Attlee, David: Binance gets approval to operate in Italy, and will open an office in Milan, on May 30, 2022, accessed via https://cointelegraph.com/news/binance-gets-approval-to-operate-in-italy-will-open-office-in-milan on June 9, 2022.
Thomas, David: Binance Returns to Italy With Regulator Approval—Now What? May 28, 2022, accessed via https://beincrypto.com/binance-returns-to-italy-with-oam-approval/ on June 10, 2022.