(BlockBar) According to a recent document a governmental decree on blockchain technology for businesses have been issued by Nicola Selva and Michele Muratori. To be noted, they are the captains regent of the Republic of San Marino. The new decree outlines procedures for registering a blockchain-based organization with the “Istituto per l’Innovazione della Repubblica di San Marino,” which is also known as San Marino Innovation Institute. As previously reported, the decree was initially presented in Milan on February 28.
According to the decree any blockchain-based organizations in the Republic of San Marino, the EU, or any country is not classified as “high risk” and is also considered relevant to the purview of San Marino legislation. To be noted, it may also be applied for registration with the institute. The institute certainty sets out to provide regulatory, as well as supervision and enforcement of those regulations. It will also take care of the anti-money laundering (AML) policy, particularly for initial token offerings (ITOs or ICOs).
The institute well distinguishes between security tokens and utility tokens with respect to ITOs. According to the institute, these are described as “Utility tokens … shall be regarded as vouchers for the purchase of services or goods offered by the Blockchain Entity… Security tokens … shall be digital assets which represent, alternatively, depending on the underlying instrument: a) participating instruments of the issuer; b) debt securities of the issuer.”
It is worth paying attention that the decree also includes tax policies for utility tokens and security tokens. Notably,for tax purposes, utility tokens will be treated as foreign currency. But on the other hand, security tokens will be treated as participating equity instruments or debt securities, which also depends on the nature of the security token. But to the relief, both types of token will be exempt from standard income tax for the purpose of “income generated through operations” using the tokens.
Reportedly Ted Budd, a member of congress in the United States, has recently testified before the House of Representatives Ways and Means Committee. The Congressman argued that cryptocurrencies should have the same de minimis tax exemption accorded to foreign currencies.