Italy Faces Frustrating Cryptocurrency Developments

Italy is set to implement new measures aimed at preventing market manipulation and enhancing the security of the cryptocurrency market. The draft decree, which is expected to be approved by the cabinet, includes heavy fines ranging from 5,000 euros to 5 million euros for crimes such as insider trading, illegal disclosure of inside information, and market manipulation. These measures align with the European Union’s regulatory framework for the crypto sector, known as Crypto Asset Markets (MiCA), and designate Italy’s central bank and market watchdog Consob as the relevant authorities for overseeing crypto enforcement. Italy has been making efforts to follow the MiCA framework, despite low cryptocurrency ownership among Italian households and limited exposure of Italian intermediaries to the market. The country has also introduced a mandatory registration requirement for crypto companies operating within its borders, although some firms were reportedly approved without comprehensive checks for investor safety.