Italy’s central bank and securities regulators are in dialogue with top crypto service firms in the country to address cybersecurity challenges and crypto-associated risks.
The development was made public by the Bank of Italy’s Governor Fabio Panetta while speaking at the 31st Assiom Forex Congress on Feb. 15. The Bank Governor made a case for an improved approach to digital assets, cybersecurity risks, and Cryptocurrency Regulations.
Mr. Panetta argued that the Global Crypto space was gathering a bad reputation due to increasing activities of bad actors and growing illicit activity in the space.
He believes improved regulation and a consistent approach across borders would help mitigate the challenge of bad actors in the crypto space.
Europe Vs. America’s Regulatory Approach
Governor Panetta highlighted the gulf between Europe’s approach to crypto regulation and the United States Approach. He stated that while Europe has a uniform regulatory framework with MiCA, the United States prefers to approach the crypto industry on a case-by-case basis.
Panetta warned that the gulf between the regulatory approach of Europe and the U.S. could be exploited by bad actors undermining the efforts by authorities to sanitize the sector.
“These regulatory divergences between the United States and Europe will need to be carefully assessed once the U.S. authorities’ position becomes clearer, in order to understand their international implications,” he stated.
Donald Trump’s administration is likely to set up a clear regulatory framework for the Crypto industry in the United States solving the issues raised by the Governor of the Bank of Italy.
Italy’s Approach to Crypto Regulation
Italy has adopted a positive approach to Cryptocurrency, welcoming innovation. However, it maintains an efficient regulatory framework in line with the Markets in Crypto Assets guidelines (MiCA).
Crypto is legal in Italy, and Buying, selling, and holding tokens is not prohibited. The Italian Ministry of Economy and Finance (MEF) oversees crypto regulation with a key focus on taxation.
Since January 2023, crypto entities have been required to register with the Organismo Agenti e Mediatori (OAM) to ensure transparency and compliance with Anti-Money Laundering (AML) measures.
Crypto Investors in the country are expected to use only registered crypto firms. EU Compliance Italy is working to align its cryptocurrency regulations with the EU’s Markets in Crypto-Assets (MiCA) regulations.
