A governmental decree on blockchain-based projects and token taxation has been issued by the captains regent of the Republic of San Marino, Nicola Selva and Michele Muratori – a government document revealed.
The decree features information on the procedures for blockchain projects registering with the “Istituto per l’Innovazione della Repubblica di San Marino,” (San Marino Innovation Institute.) The decree allows for registration of any blockchain-based project from the republic, the EU or any other “non high-risk” country.
The institute’s involvement brings with it supervision and enforcement of AML policies and general regulatory certainty for ICOs.
Taxation of tokens is also addressed in the paper, which stipulates that utility tokens would be taxed as foreign currency while security tokens would be considered participating equity instruments or debt securities. Tax exemptions on income generated through operations on both types of tokens are also introduced.