Regulatory Landscape Tightens for Crypto Operations in Italy
The Italian regulator, Consob, has issued a reminder to firms regarding the December 30, 2025, deadline for compliance with the Markets in Crypto-Assets (MiCA) regulation. This European Union framework sets new standards for crypto companies operating within member states.
Consob's statement emphasizes that under the transitional rules of MiCA, Virtual Asset Service Providers (VASPs) currently registered in Italy will only be permitted to continue their operations until the specified deadline. This allowance is contingent upon their submission of a formal application to become licensed Crypto-Asset Service Providers (CASPs) either in Italy or another EU member state.
For crypto firms that file their applications within the established timeframe, a grace period is provided. This period allows them to maintain their operations while their authorization requests are under evaluation. However, they must receive a definitive response from the supervisory authorities before June 30, 2026.
The watchdog has clearly stated that firms which do not intend to seek MiCA authorization must cease all operations in Italy before December 30, 2025. This includes the termination of all existing contracts and the responsible return of customer assets.
Currently, Italy's regulatory regime for VASPs primarily requires registration with the OAM (Body of Agents and Brokers). In contrast, the new MiCA regulation mandates that CASPs obtain full authorization from supervisory authorities. This transition subjects these entities to continuous oversight and significantly more rigorous operational and security standards.
The reminder issued by Consob aligns with broader efforts at the European level, mirroring similar communications from the European Securities and Markets Authority (ESMA), which is actively coordinating the transition to the MiCA framework across the EU.
Growing Concerns Over Crypto-Asset Exposure and Financial Stability
Beyond the specific regulatory pressure on crypto firms for MiCA compliance, Italy's Committee for Macroprudential Policies has voiced concerns regarding the broader financial system. This committee, which includes representatives from the Bank of Italy, Consob, IVASS, COVIP, and the Treasury, recently convened in Rome to assess potential risks to financial stability.
While the committee acknowledged that the country's current economic conditions are generally favorable, they issued a warning about increasing vulnerabilities. These vulnerabilities are specifically linked to the growing interconnections between crypto-assets and the traditional financial system, as well as the uneven nature of global cryptocurrency regulation.
In response to these concerns, the Ministry of Economy and Finance has announced the initiation of an in-depth review. This review will focus on the safeguards in place for retail investors who have direct or indirect exposure to crypto-assets. This initiative underscores Italy's cautious approach as it navigates the transition towards a fully regulated crypto-asset market environment under the MiCA framework.