Companies That Use Cryptocurrencies Cannot Be Registered According To A Court Order In Italy
Companies using cryptocurrencies will not be acceptable to be registered according to a decision given by a judge in an Italian court.
The story comes from an Italian Joint Stock company, S.r.l (‘società a responsabilità limitata’). Notably, S.r.L stands for ‘società a responsabilità limitata' which means ‘limited liability company'. As per Italian commercial law, the joint-stock option is there to oblige to a few social responsibilities.
The article 2465 of the Civil code on the case of conferment, states that:
“All asset items must have a measurable economic value… those who confer assets in kind or credits should attach a report containing an indication of the evaluation criteria adopted and the attestation that their value is at least equal to that attributed to them for the purposes of determining the capital share.”
The crypto that was used by the Società a Responsabilità Limitata was not registered in any of the major in exchanges. Additionally, the crypto was being traded only by one single exchange which makes it harder for regulators and lawmakers to assess the economics behind the project. This was the primary reason for rejection.
They have given access to its credentials and passwords when the courts had earlier claimed that there were inadequate materials given to the registrar to establish their candidacy. As the crypto that was utilized is not a verifiable object, it cannot hold grounds in the court.
The court further feels that an improved regulatory framework is required to effectively take care of cases like these. Recently, the Florence court had free access to cryptos on the Bitgrin platform, when they had ordered for the confiscation of $15 million in cryptos. The details with which these courts are handling the issues around the crypto ecosystem shows that the courts of Italy have realized the importance and the future of digital assets.
However, the recent event has shown that there still is a huge gap in identifying mainstream cryptocurrencies as Bitcoin and recognizing smaller ones like S.r.L’s attempt. Although the seizure sets a pretense that in the near future these courts will be more careful in their attempts at understanding the domain of cryptocurrencies.