What To Know:
- Italy begins a full-scale review of crypto risk controls, led by the Macroprudential Policy Committee.
- Consob sets deadlines for VASPs to transition into licensed CASPs under MiCA or exit the market.
- Regulators push for stronger cybersecurity audits, streamlined token filings and tighter EU-level oversight.
Italy has launched a forceful reassessment of how crypto investments are monitored, signalling a shift from permissive oversight to rigorous control. The Ministry of Economy announced a comprehensive review of risk control mechanisms for retail participation in crypto assets, tasking the Macroprudential Policy Committee with mapping gaps and recommending rapid fixes. The committee brings together the Bank of Italy, securities regulator Consob, insurance and pension supervisors, and the Ministry of Finance.
Italy Outlines Crypto Investments Safety Mechanism
Regulators frame the move as urgent. Crypto exposures are increasingly woven into traditional finance, and cross-border regulatory fragmentation amplifies systemic risk. Italy’s economic fundamentals remain steady, but officials single out global uncertainty and market fragility as reasons to act now. The central message is direct: protect ordinary investors while the market’s infrastructure is still forming.
Consob has already set a hard timetable for Virtual Asset Service Providers registered with Italy’s OAM. Those providers must apply to become authorised Crypto Asset Service Providers by 30 December 2025 to continue operating. Failure to secure authorisation will force services to cease by 30 June 2026. Consob urges investors to confirm whether their provider intends to seek a CASP licence and to check registries maintained by the European Securities and Markets Authority and OAM. If a provider lacks authorisation, investors have the right to request the return of their assets.
The regulator also instructs VASPs that will not apply for CASP authorisation to wind down operations, close contracts and return user funds by the end-2025 deadline. Providers must publish clear exit plans for customers. These measures are presented as essential steps to manage the MiCA transition across the European Union in an orderly fashion.
MiCA, which began applying on 30 December 2024, created a unified legal framework for crypto services across the bloc. It sets licensing standards, conduct rules and disclosure obligations intended to standardise market entry and improve transparency. Yet early signals from national authorities show uneven enforcement. Differences in interpretation and application have opened space for regulatory arbitrage and weakened the practical reach of a single market.
France’s AMF, Austria’s FMA and Italy’s Consob have moved from caution to advocacy. Their joint proposals press for stronger cross-border oversight, higher standards for platforms that serve European customers, and more rigorous cyber-resilience requirements. One notable recommendation calls for direct supervision by ESMA of major crypto-asset providers to reduce incentives for firms to shop for friendlier host states.
Cybersecurity rises repeatedly in official statements. Regulators advocate independent audits before MiCA authorisations are issued and periodic reassessments thereafter. The audits would test custody arrangements, resilience to cyber-attacks and incident management. Officials argue that robust cyber defences form a basic element of market trust and that inadequate controls can ripple through the financial system.
Another priority is to streamline token issuance processes. Authorities propose clearer scrutiny of white papers and the creation of a single access point for filings linked to pan-European token offerings, excluding stablecoins. Centralised submission and review could increase legal certainty for issuers and make it easier for investors to perform due diligence.
Italy’s review carries a sharper implication. The initial regulatory architecture no longer appears sufficient. Without prompt reinforcement, the single market risks fragmentation and national authorities may resort to precautionary measures that fragment activity even further. Italy is choosing to confront that prospect by tightening domestic controls and pressing for stronger EU-level supervision.
Also Read: Spain Proposes New Law Increasing Taxes on Bitcoin & Other Crypto
