Italy to Increase Surveillance of Crypto Market With Fines as High as 5M Euros: Reuters

As a seasoned crypto investor, I’ve seen my fair share of regulatory changes and market fluctuations. The recent news that Italy is beefing up surveillance over risks tied to the crypto asset market comes as no surprise to me. With the European Union gearing up to implement the Markets in Crypto Assets (MiCA) framework, it’s only natural for individual countries to take steps towards designating their National Competent Authorities (NCA).

According to a report by Reuters, Italy is planning to enforce stringent penalties against individuals who attempt to manipulate the cryptocurrency market as part of an expanded effort to closely monitor risks associated with this sector. A draft decree obtained by Reuters provides insight into these upcoming measures.

As a researcher, I’ve come across an upcoming cabinet approval of a document with significant penalties for certain financial misconducts. The fines will range from a modest 5,000 euros ($5,400) to a hefty 5 million euros for infringements such as insider trading, unauthorized disclosure of confidential information, and market manipulation.

European Union countries are preparing to enforce the MiCA regulatory framework for the crypto sector, which involves designating local authorities to oversee crypto-related activities. These authorities, known as National Competent Authorities (NCA), will play a crucial role in implementing and enforcing MiCA regulations within their respective jurisdictions.

According to Reuters, the draft decree identifies Italy’s central bank and securities regulator, Consob, as the responsible bodies.

For some time now, Italy has been making preparations to adhere to the framework, as indicated by the central bank governor. Notably, this action comes despite a recent survey revealing that merely 2% of Italian households possess small quantities of cryptocurrencies on average. Furthermore, the exposure of Italian financial intermediaries towards the market remains minimal.

According to a report by CoinDesk, Italy instituted compulsory registration for cryptocurrency businesses within its borders. However, out of the 73 companies granted the status of virtual currency service providers, proper safety assessments were not conducted before approval.

In Italy, there’s growing positivity towards cryptocurrencies, as evidenced by actions like the partnership between Conio, a crypto wallet provider, and Coinbase (COIN). This collaboration aims to make digital assets accessible to Italian banks and financial institutions.