Italy Tightens Crypto Regulations

Italy is set to approve a draft decree aimed at tightening regulations on the cryptocurrency market. This new legislation is part of a broader push by the European Union to enhance oversight and curb market manipulation. Key features of the decree include hefty fines for misconduct, ranging from €5,000 to €5 million for activities like insider trading and unlawful disclosure of sensitive information.
The decree assigns oversight responsibilities to the Bank of Italy and Consob, the country’s market regulator, to ensure financial stability and orderly market operations. This dual approach leverages the expertise of both institutions to address systemic risks and market-specific challenges.
Building on existing regulations from January 2022, the new decree mandates that all crypto service providers, domestic and foreign, register with the Organismo Agenti e Mediatori (OAM). The OAM acts as a gatekeeper to ensure only reputable providers operate in Italy, promoting transparency and strengthening Anti-Money Laundering (AML) compliance.
While the long-term impact of these regulations remains uncertain, Italy’s proactive stance suggests a future focused on market stability and security. The increased oversight and stringent penalties aim to create a fairer crypto ecosystem, though it remains to be seen whether this will foster innovation or hinder growth in the sector.