As a seasoned crypto investor with a keen interest in European regulatory developments, I’m encouraged by Italy’s proposed measures to combat market manipulations and strengthen its oversight of crypto activities. This is a positive step towards creating a more stable and trustworthy environment for digital assets, which can help attract more institutional investors and foster innovation within the sector.
According to reports, Italy is contemplating raising penalties for cryptocurrency-related offenses as part of efforts to curb market manipulations.
Italy’s administration is considering implementing stricter consequences for individuals who attempt to manipulate the cryptocurrency market, according to information obtained by Reuters from a preliminary decree.
Should this legislation be passed, it will result in penalties ranging from €5,000 to €5 million ($5,400 to $5.4 million) for offenses including insider trading, unauthorized leakage of confidential information, and market manipulation. The enactment assigns the Bank of Italy and Consob as the key regulators for crypto-related activities, tasked with preserving financial security and overseeing the smooth operation of markets.
In the beginning of 2023, the Bank of Italy underscored the importance of a robust and risk-managed regulatory structure for stablecoins. This was done to prevent a catastrophic situation where these digital assets could experience a destabilizing rush or panic sell-off. The financial authority placed great emphasis on regulating the issuers of stablecoins, given their significant connections to decentralized finance systems.
In preparation for the European Union’s upcoming regulatory framework for the crypto industry, known as MiCA, Italy’s central bank later announced the establishment of a regulatory environment for overseeing crypto assets.
Despite the implementation of this regulatory framework for supervising cryptocurrencies, it’s still uncertain if it has been completely adopted. Back then, Ignazio Visco, who served as the governor of the Bank of Italy, pointed out that based on the central bank’s surveys, only approximately 2% of Italian households owned a modest amount of cryptocurrencies on average. Additionally, the exposure of Italian financial intermediaries to the crypto market was reportedly quite minimal.
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2024-06-21 11:58