Issuance of Regulations for the Virtual Asset Custody Service

The Central Bank of the Republic of San Marino announces the issuance of Regulation No. 2021-03, titled "Regulation on the Custody of Virtual Assets by Banks," which will come into effect on October 15, 2021.

This measure implements Article 10 of Delegated Decree No. 111 of June 23, 2021, which restricts the provision of virtual asset custody services within San Marino to banks duly authorized under Law No. 165/2005. Accordingly, the regulation grants specific regulatory powers to the Central Bank, given this exclusive competence, as well as to the Institute for Innovation, in light of the highly technological and innovative nature of such services.

More specifically, the CBSM Regulation sets out:

1. the procedures and timelines for verifying the requirements applicable to banks seeking authorization to provide the service;

1. the rules governing the authorization process, including cases where deadlines may be suspended;

1. the possible grounds for suspension of authorization and the related procedures;

1. the content, maintenance, and update requirements of the public register of authorized banks providing the service;

1. the characteristics and minimum coverage amount of the insurance required to obtain and maintain authorization;

1.  the reporting procedures for IT security incidents.
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The regulatory framework established by Delegated Decree No. 111/2021 and CBSM Regulation No. 2021-03 positions San Marino as one of the most advanced jurisdictions in the regulation of this increasingly in-demand service within the global economic landscape.