Markets
Italy will increase surveillance of cryptocurrency market with fines of up to 5 million euros: Reuters
Italy is ready to take measures This will include large fines for those who manipulate the cryptocurrency market as part of a broader plan to strengthen oversight of risks related to the sector, Reuters reported, citing a draft decree it reviewed.
The document is expected to be approved by the government later today and will include fines of between 5,000 euros ($5,400) and 5 million euros for insider trading, illegal disclosure of inside information or market manipulation, the report said.
European Union countries are preparing to implement the bloc’s regulatory framework for the sector, known as Cryptocurrency Markets (MiCA). Part of this process is deciding which local regulators will help oversee cryptocurrencies, called national competent authorities (NCAs).
The Reuters report said the draft decree designates Italy’s central bank and market watchdog, Consob, as the competent authorities.
Italy has been preparing to follow the picture for some time, with the the central bank governor adds the warning which is doing so despite a survey showing that only around 2% of Italian households hold “modest amounts, on average” of cryptocurrencies and that Italian intermediaries’ exposure to the market has also been very limited.
Italy has established mandatory registration requirements for cryptocurrency companies operating in the nation, but has passed 73 companies as virtual currency service providers without performing adequate checks to ensure they are safe for investors, CoinDesk previously reported.
Optimism about cryptocurrencies in Italy has been reflected in moves like that of Conio, a cryptocurrency wallet company, which partnered with Coinbase (COIN) to bring digital assets to Italian banks and financial institutions.