ROME, Thursday, July 11, 2024–Italian financial authorities are poised to provide greater clarity on cryptocurrency regulation, with the Bank of Italy announcing plans to release its own guidelines “in the coming days.”
The move comes as the European Union prepares to implement the Markets in Crypto-Assets Regulation (MiCA), a comprehensive framework governing the crypto asset space.
The announcement follows a Reuters report late June that detailed the Italian government’s plans to increase surveillance on crypto markets.
The report cited a draft decree outlining potential fines ranging from 5,000 euros ($5,400) to 5 million euros ($5.4 million) for violations such as market manipulation or insider trading, aligning with MiCA’s enforcement mechanisms.
The Bank of Italy’s forthcoming guidelines are expected to provide further details on how these regulations will be applied in practice within the Italian financial system.
This will be crucial information for both investors and crypto service providers operating within the country.
“These guidelines aim to facilitate an effective application of MiCA throughout Italy,” said Bank of Italy Governor Fabio Panetta in a speech on Tuesday to the Italian Banking Association.
Panetta emphasized the importance of establishing a clear regulatory framework to “protect the holders” of certain cryptocurrencies, particularly those unfamiliar with the potential risks involved.
The governor specifically mentioned a rise in investments in “unbacked” cryptocurrencies, assets not pegged to traditional financial instruments like fiat currencies or commodities.
While acknowledging the current low number of such investments in Italy, Panetta cautioned about their potential for significant growth and associated risks.
