Italy consults crypto firms amid EU-US regulatory split

Italy’s central bank (Banca d’Italia) and securities regulator (Consob) are actively engaging with crypto service providers to ensure robust safeguards against financial and cybersecurity risks.

This initiative, revealed by Bank of Italy Governor Fabio Panetta at the 31st Assiom Forex Congress on Feb. 15, underscores the country's commitment to navigating the evolving landscape of crypto assets, digital finance, and related cyber threats.

The discussions occur as global regulatory scrutiny of the crypto ecosystem intensifies, driven by concerns over money laundering and financial stability.

Europe has adopted the Markets in Crypto-Assets (MiCA) regulation to protect investors, while the United States approaches crypto regulation on a case-by-case basis, classifying assets as securities.

According to L'economia per tutti, Legislative Decree 129/2024, approved last September, contains provisions for aligning the national regulatory framework to MiCAR.

This is a fundamental step towards introducing a common set of rules for all Member States.

According to Panetta, the differences in regulatory approach between the U.S. and Europe could be exploited by crypto operators, potentially undermining the integrity of the financial system.

He emphasized the need for careful assessment of these divergences to understand their international implications.

The Bank of Italy and Consob are collaborating to ensure that crypto entities operating in Italy have adequate safeguards to manage strategic, operational, and financial risks, as well as risks linked to money laundering and the circumvention of international sanctions.

The authorities are also addressing the potential threat from Big Tech's expansion into crypto, particularly the risk to commercial banks if privately issued tokens gain widespread adoption.

Italy has established a 12-month transitional period during which existing CASPs can operate under current regulations while seeking MiCA authorization.