Bank of Italy Governor Fabio Panetta has revealed new guidelines regarding bank-issued electronic money tokens under the European Union’s crypto asset rules. The main goal is to ensure the stability of the payment system in Italy, according to a report from Reuters.
During a speech at the Italian Banking Association, Panetta hinted that the EU’s Market in Crypto Asset Regulation (MiCAR) could potentially conflict with Italian law. This regulation recognizes electronic money tokens (EMTs) and asset-reference tokens (ARTs) as means of payment, requiring issuers to obtain the necessary authorization to operate within the EU.
However, Panetta expressed Italy’s preference for allowing only EMTs, which can be issued by banks or electronic money institutions. He stated that EMTs are the most reliable instruments for preserving public trust as means of payment.
In addition to implementing MiCAR guidelines, Italy is considering stricter penalties for crypto-related offenses such as market manipulation. Proposed legislation suggests fines ranging from €5,000 to €5 million for offenses like insider trading and unauthorized disclosure of inside information. The Bank of Italy and market regulator Consob will be responsible for overseeing crypto activities, ensuring financial stability and market orderliness.
Looking ahead to early 2023, the Bank of Italy stressed the importance of establishing a robust regulatory framework for stablecoins. This is essential to prevent potential risks such as destabilizing “runs” on these digital assets. The regulator highlighted the need for increased regulatory attention towards stablecoin issuers, particularly due to their connections with decentralized finance.
Italy’s approach to implementing MiCA guidelines reflects a commitment to maintaining financial stability and regulatory clarity within the growing crypto asset market. By focusing on electronic money tokens and strengthening penalties for misconduct, the country aims to protect public trust and ensure the integrity of its payment system.