Italy Sets Up Crypto Environment to Meet EU’s New Laws: Central Bank Governor
• Italy’s central bank governor Ignazio Visco has announced the country’s regulators are preparing for Europe’s upcoming crypto regulations.
• Surveys show only 2% of Italian households own crypto and the exposure of Italian intermediaries to the market is limited.
• Bank of Italy is working with Consob and Ministry of Economy to set up authorization and supervision activities laid out in MiCA framework, which will be voted on in April.
Italy Preparing Crypto Environment to Meet EU Regulations
Italy’s central bank Governor Ignazio Visco has announced that the country’s regulators are preparing a supervisory environment anticipating European Union laws for regulating crypto assets. Although surveys show only about 2% of households own crypto, Bank of Italy is taking steps to ensure it meets the forthcoming Markets in Crypto Assets (MiCA) rules for service providers.
Survey Results Show Limited Exposure To Crypto Market
Bank of Italy surveys have shown that only about 2% of Italian households hold „modest amounts, on average“ of cryptocurrencies. The exposure of Italian intermediaries to the market was also very limited, indicating that last year’s crypto market collapse did not have any „systemic consequences“ on „the real economy,“ according to Visco.
MiCA Rules For Service Providers
The MiCA rules will require licensing requirements for all crypto issuers and service providers including cryptocurrency exchange platforms when they come into effect in April. In order to meet these requirements, Bank of Italy has been working with local financial markets regulator Consob and the Ministry of Economy and Finance on setting up authorization and supervision activities outlined by MiCA.
Mandatory Registration Requirement For Crypto Firms
Previously, Italy had set up a mandatory registration requirement for all cryptocurrency firms operating in the country but as yet none have been vetted by regulators. As of Monday there were 91 virtual asset service providers registered with Bank Of Italy.
Applications Of Distributed Ledger Technology Being Examined By Regulators
Additionally, Bank Of Italy is looking into various applications of distributed ledger technology such as blockchain that could help enhance regulatory oversight over digital assets trading activities within its borders.