Italian Government Announces Crypto Subsidy Plans
- Crypto regulation has become a growing conversation amongst many European countries.
The Italian Ministry of Economic Development has moved to offer support for some blockchain platforms that are considered eligible to apply for about $46 million in government-backed subsidies. The Ministry of Economic Development plans to begin the application in September this year.
The Ministry announced that businesses and public or private research institutions will be able to submit financing requests to the state for the creation of initiatives including blockchain and, artificial intelligence. The Italian government intends to invest heavily in technology and innovation, and this subsidy reflects its ambition.
A statement from the Minister of Economic Development, Giancarlo Giorgetti, read,
We support companies’ investments in cutting-edge technologies with the aim of encouraging the modernization of production systems through management models that are increasingly interconnected, efficient, secure and fast. The goal of competitiveness requires the manufacturing industry to constantly innovate and use the potential of new technologies.
The Italian government’s instruction was made feasible by a decree issued in December 2021 that established the fund’s eligibility requirements and a subsequent one issued in June 2022 that specified the requirements for applying for funding. The order states that businesses of any size are allowed to apply for subsidies as long as the money will be utilized for blockchain, the Internet of Things, or artificial intelligence in fields like production, tourism, healthcare, ecology, and aviation.
Crypto Regulation in Europe
Italy is a member of the European Union, therefore recent legislation approved by the EU Parliament that seeks to bring cryptocurrency issuers and service providers under its jurisdictional supervision will have a potential effect on Italy. The European Union Parliament intends to bring all regulators under a single regulatory structure. The EU plans to hold a supervisory board meeting later this month, which will be attended by 19 members of the EU.
Italy is one of the European countries that has released a series of guidelines for cryptocurrency service providers. Earlier this year, the country announced new guidelines for both Italian and international businesses offering virtual currency services on Italian soil. The regulation applies to VASPs that offer services including virtual currency trading and storage, as well as suppliers of digital wallet services.
The Decree introduces administrative sanctions in the event of a breach of the relevant rules, which clarifies the conditions for the supply of any virtual currency or digital asset services in Italy. Italy’s relationship with the crypto space highlights the growing recognition European countries have given the industry.
It appears that Europe is open to crypto but wants to regulate it. The EU believes regulation of the industry is important to prevent fraud and other scams that have become a norm in the crypto space. EU Commissioner for Home Affairs Ylva Johansson previously remarked,
I’m not uncomfortable with digital currencies but we need to regulate them in a proper way so criminal organizations and terrorists can’t exploit the anonymity allowed by some networks
Many crypto users understand that regulations would mean formal and legal recognition but it also leaves a gap in the quest for decentralization which is the true idea behind blockchain technology.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
