Italy is stepping up its surveillance of the crypto asset market to address potential risks associated with the sector. According to a report by Reuters, a draft decree is set to be approved by the cabinet today, imposing fines ranging from 5,000 euros to 5 million euros for activities such as insider trading, unlawful disclosure of inside information, and market manipulation.
This move is part of a broader effort to enhance oversight of the crypto market in line with the European Union’s regulatory framework for crypto assets, known as the Markets in Crypto Asset (MiCA). As part of this process, Italy has designated its central bank and market watchdog, Consob, as the relevant authorities to supervise the sector.
Despite the relatively low level of crypto adoption in Italy, with only about 2% of households holding modest amounts of crypto on average, the country has been taking steps to regulate the industry. For example, Italy has implemented a mandatory registration requirement for crypto companies operating within its borders. However, there have been concerns about the approval process, with reports indicating that 73 firms were approved as virtual currency service providers without undergoing proper checks.
Despite these challenges, there remains optimism about the potential of crypto in Italy. Companies like Conio, a cryptocurrency wallet provider, have been making efforts to bring digital assets to Italian banks and financial institutions. In fact, Conio recently partnered with Coinbase to facilitate the integration of cryptocurrencies into the traditional financial system.
Overall, Italy’s decision to intensify surveillance of the crypto market and impose hefty fines for misconduct reflects a growing recognition of the importance of regulating this rapidly evolving sector. By aligning with the EU’s regulatory framework and designating competent authorities to oversee the industry, Italy is taking proactive steps to ensure the integrity and stability of its crypto market.