Strengthening Supervision of Cryptocurrency Companies in Italy
Date: 2024-06-21 Author: Oliver Abernathy Categories: IN WORLD
Italy is taking significant steps to tighten control over the activities of cryptocurrency companies in order to prepare the regulatory framework for the entry into force of the EU Cryptocurrency Act (MiCA). Authorities intend to provide stricter oversight of crypto companies to prevent insider trading, market manipulation and illegal disclosure of inside information.
Introduction of Severe Fines
Violations related to insider trading of digital assets, market manipulation or illegal disclosure of inside information are subject to significant penalties. Fines range from $5,400 to $5.4 million, which should serve as a powerful deterrent to potential violators.
Two key agencies will be involved to regulate the activities of cryptocurrency companies: the Central Bank of Italy and the Italian Companies and Exchange Commission (CONSOB). These authorities will take on the task of enforcing new rules and regulations, as well as monitoring transactions in the cryptocurrency market.
Mandatory Registration with OAM
The Italian Ministry of Economy and Finance (MEF) has required that all Italian and foreign companies providing cryptocurrency services register with the special register of the payment services regulator Organismo Agenti E Mediatori (OAM). The OAM is responsible for overseeing financial, credit and brokerage activities. The registry already includes divisions of the largest crypto exchanges, such as Binance Italy, as well as the Bitpanda, BitGo Europe, BitPay and Bitstamp Europe platforms.
Registration with OAM will ensure transparency and compliance with anti-money laundering (AML) regulations. This means that Italian traders will only be allowed to use the services of registered virtual asset service providers (VASPs). This approach is aimed at protecting users and preventing illegal financial transactions.
Blocking Illegal Platforms
In April, CONSOB blocked Italians from accessing several cryptocurrency platforms. These exchanges were punished for illegally promoting investments in crypto assets and trading in foreign currencies. This move underscored the determination of Italian authorities in the fight against violations in the cryptocurrency market.
Strengthening oversight of cryptocurrency companies in Italy demonstrates the authorities' desire to create a safe and transparent environment for all participants in the cryptocurrency market. The measures taken will help prevent illegal actions and protect the interests of investors, as well as prepare the regulatory framework for the entry into force of the EU Cryptocurrency Act (MiCA).
