Italy will implement measures to prevent market manipulation and increase the security of the cryptocurrency market, including imposing heavy fines on violators, according to a draft decree reviewed by Reuters.
The decree, which is expected to be approved by the cabinet later today, provides for fines ranging from 5,000 euros ($5,400) to 5 million euros for crimes such as insider trading, illegal disclosure of inside information or market manipulation.
The move comes as European Union countries prepare to implement the EU's regulatory framework for the crypto sector, known as Crypto Asset Markets (MiCA). A key part of this process involves determining which local regulators, called National Competent Authorities (NCAs), will oversee crypto enforcement.
According to Reuters, the draft decree designates Italy's central bank and market watchdog Consob as the relevant authorities for this task.
Italy has been preparing to follow the MiCA framework for some time, as the central bank governor noted, despite a survey showing that only 2% of Italian households own “modest amounts of cryptocurrencies on average” and that Italian intermediaries have very limited exposure to the market.
In addition, Italy has introduced a mandatory registration requirement for crypto companies operating within the country. However, 73 firms were reportedly approved as virtual currency service providers without conducting extensive checks to ensure the safety of investors.
*This is not investment advice.