Italy is entering the final stage of its transition into the European Union’s Markets in Crypto-Assets (MiCAR) framework, and the shift will have immediate consequences for all Virtual Asset Service Providers (VASPs) operating in the country.
Effective December 30, 2025, any VASP that does not apply for authorization as a Crypto-Asset Service Provider (CASP) will be forced to halt all operations and return client assets. The rule marks one of the most decisive national implementations of MiCAR, signaling a strict move toward unified oversight across the EU.
December Deadline Forces Industry Decision
The Bank of Italy and Consob have set December 30, 2025, as the final deadline for VASPs to submit their CASP authorization applications.
Italy’s financial regulator Consob has warned investors and Virtual Asset Service Providers (VASPs) that the MiCAR transition period will end on December 30, 2025. VASPs that do not apply for authorization as Crypto-Asset Service Providers (CASPs) by the deadline must cease…
Any firm that does not file by that date must immediately stop providing crypto-related services in Italy and begin the full return of all client funds and digital assets. This requirement is designed to prevent unlicensed platforms from continuing operations during the transition period, closing the regulatory gaps that MiCAR aims to eliminate.
Firms that do apply on time will be allowed to continue operating under a transitional regime. This temporary status will remain valid until June 30, 2026, or until authorities approve or reject the application. Companies that receive authorization before June will transition into MiCAR-compliant CASPs, while denied applicants will be required to exit the market.
Guidance for Italian Crypto Users
Consob has issued clear guidance for investors, emphasising the importance of checking whether their service provider intends to apply for CASP status.
Users are encouraged to request explicit confirmation of the company’s future plans and ensure they understand how their assets will be handled during the transition. The regulator’s message signals a growing push to protect retail clients from sudden platform closures or operational uncertainty as MiCAR takes full effect.
Aligning Italy With the EU’s New Regulatory Framework
Italy’s firm deadlines reflect the EU’s broader goal of constructing a harmonised regulatory environment for digital assets. MiCAR is built to unify rules across member states, improve market integrity, and reinforce consumer protections. By forcing non-compliant firms out of the market and ensuring that only fully vetted CASPs remain, Italy aims to reduce regulatory fragmentation and strengthen investor confidence.
The next six months will be critical for crypto companies operating in Italy. Those prepared to meet MiCAR’s requirements will gain a stable legal pathway into the EU’s regulated market, while others will face a hard exit as the country enforces one of the strictest transitions seen in the bloc.