Blockchain law passed in San Marino contains some interesting aspects

Photo by Lorenzo Castagnone on Unsplash

 

On June 6, 2019, the Republic of San Marino approved the Blockchain Decree of the Republic of San Marino (Delegate Decree n. 86, dated May 23, 2019).

No official press statement has been released yet, but this source revealed the news.

The Blockchain Decree provides a regulatory framework formulating specific rules for two different applications of Distributed Register Technology (Distributed Ledger Technology or – more commonly – Blockchain): investment tokens (digital tools allowing users to purchase tokens at an initial token offering in which a Blockchain entity has obtained a particular recognition and registered in a special register, according to the specific rules provided for the individual types of tokens) and utility tokens (i.e., token used for the purchase/access of goods or services offered by a Blockchain entity).

For tax and accounting purposes, the law chose to treat blockchains as follows:

  • Usage (utility) tokens are treated the same as foreign currencies; and
  • Investment tokens are treated the same as shares, financial instruments ,or debt securities of the issuer depending on the underlying instrument.

The law gives a tax exemption under “IGR” (which is General Income Tax) for income generated through transactions carried out with tokens covered by the Blockchain Decree.

The Decree includes an anti-money laundering regulation to protect the system.

Decreto Delegato 23 maggio 2019 n.86 is available at https://www.consigliograndeegenerale.sm…

Earlier this year another European country, Luxembourg, passed a blockchain law

More on the Blockchain Decree of the Republic of San Marino is available at https://drive.google.com…

 

For more information on how Blockchain technology could impact your legal issues Francesca Giannoni-Crystal and  Federica Romanelli