Regulation
Bank of Italy prepares to implement EU MiCA regulation
The Bank of Italy is preparing to implement the European Union (EU) Markets in Crypto-Assets (MiCA) regulation. In particular, this significant move is aimed at preserving the smooth functioning of the payment system, according to recent reports. Additionally, the bank’s upcoming guidelines will clarify how the new rules will be applied, signaling a transformational phase for the Italian cryptocurrency market.
Bank of Italy to implement MiCA
In the next few days, the Bank of Italy will publish guidelines for the EU MiCA regulation. Governor Fabio Panetta, in a speech to the Italian Banking Association (ABI), stressed the importance of maintaining a stable payment system.
According to a recent Reuters report, MiCA Regulation identifies electronic money tokens (EMTs) and asset reference tokens (ARTs) as viable payment methods. For context, Panetta highlighted that EMTs are tied to a single official currency, while ARTs are dependent on one or more underlying assets.
Meanwhile, according to Panetta, only EMTs can fully preserve public trust as a means of payment. These tokens can be issued by banks or electronic money institutions. This approach aims to ensure the reliability and stability of the payment system amid the growing popularity of cryptocurrency resources.
Furthermore, this strategic move by the Bank of Italy underscores its commitment to integrating cryptocurrencies into the traditional financial system. With the implementation of MiCA, Italy aims to create a regulated and secure environment for cryptocurrency transactions. The guidelines will provide clarity and direction to market participants, promoting trust in the evolving cryptocurrency landscape.
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Wider impact of regulation
MiCA regulation is set to shake up the European cryptocurrency market. As CoinGape Media previously reported, Patrick Hansen, Director of Strategy and Policy at Circle, noted that MiCA will localize, institutionalize, and consolidate the EU Cryptocurrency
landscape. He believes MiCA will professionalize the market, forcing participants to conform or exit.
In the meantime, this regulatory framework is expected to bring much-needed clarity and structure to the cryptocurrency market. By establishing clear rules and guidelines, MiCA aims to create a safer and more transparent environment for cryptocurrency operations.
Additionally, Circle’s recent announcement that its stablecoinsUSDC and EURC are now available under EU regulations, marking a significant milestone. This development makes Circle the first stablecoin company to become MiCA compliant.
Meanwhile, the introduction of MiCA is expected to have far-reaching implications for the cryptocurrency industry. It will likely lead to increased institutional participation and greater market stability. By promoting a regulated environment, MiCA aims to protect investors and ensure the long-term sustainability of the cryptocurrency market.
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