1) we cannot breach the law and avoid KYC/AML
no, we cannot. Present EU AML directives are quite clear.
He knows very well that european directives don't have direct effect on private relations. Only bind states to adopt internal legislation. https://en.wikipedia.org/wiki/Directive_(European_Union).
I told him that more than a month ago:
You quoted European directives?! You have to know that directives are only binding on State members in order to compel them to approve national legislation. They are completely irrelevant on the relations between private persons, as you well know.
He is invoking european directives (only the 5th AML european directive of 2018 applies to crypto exchanges, but Italy hasn't yet execute it with internal legislation) well aware that they are irrelevant to this case.
But as I said, Italy adopted their Legislative Decree No. 90 of 25 May 2017 on AML and KYC duties, but his article 3, n.º 5, says that crypto exchanges are restrictively ("limitatamente") subject to this duties only on their operations of conversion from crypto to fiat. That is, to customers who ask for fiat withdrawals. I left clear 4 years ago to him on an email exchange that I wouldn't ask for any fiat withdrawal. And he confirmed their TOS: that in this case verification was voluntary.
What they are doing is completely contrary to their own TOS/FAQ and to italian law.
Again I want to thank r34tr783tr78, Mirae and now JollyGood for their attention to this case.
Qualifying assets and transactions
Is there any limitation on the types of assets or transactions that can form the basis of a money laundering offence?There is no limitation on the types of assets that can form the basis of a money laundering offence, and there is no monetary threshold to prosecution. However, where the goods laundered have a limited value, or they derive from a less serious predicate offence (punished with imprisonment for less than five years), mitigating circumstances could apply, which can decrease the amount of the effective punishment.
Reform of anti-money laundering regulation (vanberings - law firm)
https://vanberings.com/EN/Site/News/2017/Reform-of-anti_money-laundering-regulationDECRETO LEGISLATIVO 25 maggio 2017, n. 90
http://www.gazzettaufficiale.it/eli/id/2017/06/19/17G00104/sgIt specifically refers to:
qq) virtual currency: the digital representation of value, not issued by a central bank or a public authority, not necessarily linked to a currency that is legal tender, used as a medium of exchange for the purchase of goods and services e-transferred, stored and negotiated electronically.
I have on the Rock Trading exchange 35519 euros
An entity is required to carry out an adequate client and/or beneficial owner due diligence in case of ongoing business relationship or occasional transaction involving the transfer or the handling of payment of an amount equal to or higher than 15,000 Euro n) identification data: name and surname, place and date of birth, residence and domicile, where different from residence of the registry, the details of the identification document and, where assigned, the tax code or, in the case of subjects other than natural person, the name, the registered office and, where assigned, the fiscal Code;