It must be considered that the blockchain technology, on which bitcoin and other cryptocurrencies are based, makes it difficult to determine their precise geographical location.
Cryptocurrencies are dematerialized, do not have an “issuer” that can be located in a specific state and do not provide for an intermediary and their storage methods are varied and modifiable.
A currency can be considered as such when it has a link with a territory. Cryptocurrencies obviously do not have this link, they are a-territorial, they are neither in Italy nor abroad. It can be said that cryptocurrencies are in the “network” (in the blockchain), for which there is neither a concept of “foreign” nor of national territory.
On the basis of these considerations, the provision of the director of the Revenue Agency with which the declarative models are approved that provide for the obligation to indicate cryptocurrencies in the RW framework (most recently the provision 28928/2021 of last January 29 for the 2021 models ) would be in contrast with the primary reference standard (article 4 of Legislative Decree 167/1990).
It may be useful to clarify what a cryptocurrency wallet is and how it works. The cryptocurrency wallet is software that gives you access to digital currencies, allowing you to exchange and use them for transactions. Cryptocurrencies are digital, have no physical form and are not stored anywhere.
The wallet does not contain cryptocurrencies, it merely communicates with the various blockchains (a are grouped into “blocks”, concatenated in chronological order, and whose integrity is guaranteed by the use of cryptography). The wallet interacts with the blockchains thanks to two codes: the private key and the public key.
The private key is an identification code of the wallet, generated in the wallet activation procedure (similar to the pin code of the mobile phone or ATM), it is used to authenticate access to the wallet, to allow the use of cryptocurrencies, in turn connected to a public key.
It can thus be concluded that the obligation to indicate in part RW does not exist every time the natural person has the availability of the private key, which represents the “means” through which the same person expresses the will to dispose of the cryptocurrencies.
The obligation of fiscal monitoring should therefore not be fulfilled in the case in which the natural person resident in Italy has the availability of the private key, given that in this case the place of holding of the virtual currencies can only coincide with the State where the taxpayer is resident for tax purposes. In this case, in fact, one should not speak in any way of assets held abroad.