The Bank of Italy, is set to publish comprehensive guidelines on the implementation of the European Union’s new crypto regulations in the “coming days,” announced Governor Fabio Panetta. These guidelines aim to streamline the application of the Markets in Crypto-Assets Regulation (MiCA) and ensure robust protection for cryptocurrency holders.
MiCA Framework Overview
Governor Panetta outlined MiCA’s framework during his address to the Italian Banking Association, emphasizing two primary categories of tokens suitable for payment: asset-reference tokens (ARTs) and electronic money tokens (EMTs). He underscored that EMTs, unlike ARTs, serve as a reliable means of payment while maintaining public trust. EMTs derive their value from being pegged to a specific official currency, such as stablecoins backed by the US dollar.
Critique of Unbacked Cryptocurrencies
Governor Panetta criticized cryptocurrencies like Bitcoin and Ethereum, labeling them as “unbacked crypto-assets” devoid of intrinsic value. He likened their speculative nature to gambling, suggesting that investors primarily seek to capitalize on price volatility, potentially evading tax regulations and anti-money laundering measures.
Fundamental Characteristics of Money
Panetta argued that these cryptocurrencies do not meet the essential criteria for functioning as true money, namely as a means of payment, store of value, and unit of account. He highlighted concerns that some investors may not fully grasp the risks associated with these assets, though their numbers remain relatively low for now.
Regulatory Measures and Future Outlook
In late June, reports indicated that the Italian government plans to enhance surveillance over crypto markets to comply with MiCA. Proposed measures include fines ranging from 5,000 euros to 5 million euros for violations spanning market manipulation to insider trading.
The upcoming release of guidelines by the Bank of Italy underscores its proactive approach to regulating the crypto landscape under EU directives. Governor Panetta’s remarks signal a concerted effort to balance innovation with investor protection in the evolving digital asset market.
This structured approach ensures clarity and compliance within Italy’s financial sector, setting a precedent for regulatory alignment across the European Union.
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