Regulation
Italy teases selective implementation of MiCA guidelines: report
Bank of Italy Governor Fabio Panetta has announced guidelines focused on e-money tokens issued by banks, as part of new EU rules on cryptocurrencies, to stabilize the payments system.
The Bank of Italy is set to introduce a cryptocurrency guide for financial institutions to clarify European Union rules on cryptocurrencies, with the aim of safeguarding the stability of the payment system, Reuters relationships.
Speaking at the Italian Banking Association, Bank of Italy Governor Fabio Panetta ironically stated that the European Market in Crypto Asset Regulation (MiCAR), which recognizes electronic money tokens (EMT) and asset reference tokens (ART) as means of payment, could violate Italian law.
According to MiCAR, ART and EMT issuers are required to hold the “relevant authorization” to conduct business in the EU. The relevant requirements are set out in the Crypto Markets Regulation (MiCAR) and are complemented by technical standards and guidelines developed by the European Banking Authority. However, Panetta noted that Italy is likely to allow only EMTs, without giving the green light to ARTs.
“Our assessment is that the only instruments that can fully preserve public confidence as a means of payment are EMTs, which can be issued by banks or electronic money institutions.”
Fabio Panetta
While Italy’s decision to selectively adopt MiCAR remains unclear, the country is also said to be considering tougher penalties for cryptocurrency-related crimes to counter market manipulation, as proposed by the legislation. aims to impose fines ranging from 5,000 to 5 million euros ($5,400 to $5.4 million) for crimes such as insider trading and unauthorized disclosure of privileged information.
The decree entrusts the supervision of cryptographic activities to the Bank of Italy and Consob, the market regulator, giving them the power to maintain financial stability and guarantee market order.
At the beginning of 2023, the Bank of Italy underlined the need for a strong, risk-based regulatory framework surrounding stablecoins, with the aim of averting a potential worst-case scenario of a destabilizing “run” on these digital assets. The financial regulator has particularly highlighted the need for regulatory attention, particularly towards stablecoin issuers, due to their close ties to decentralized finance.