Crypto Guidelines from Bank of Italy Raise Questions on Bitcoin’s Status

The Bank of Italy is set to release its crypto guidelines, a significant move for implementing the EU’s MiCA regulation. Governor Fabio Panetta has raised questions about Bitcoin’s status as a currency, emphasizing a need for rigorous guidelines and stronger crypto user protection. The guidelines will distinguish between Asset-Referenced Tokens (ART) and Electronic Money Tokens (EMT), with EMTs being favored for everyday transactions due to their stability and trust. Panetta voiced concerns about decentralized cryptos like Bitcoin and Ethereum, citing potential misuse for tax evasion and money laundering. Italy plans to enforce deterrent sanctions for offenses like market manipulation. Despite a cautious stance, the country is open to financial innovation, with the Central Bank promoting decentralized finance and tokenized assets.