Italy wants to ramp up its crypto regulation, because with the rapid rise of digital currencies, Italy’s Banca d’Italia and the Italian securities regulator are chatting with crypto firms to tighten up safeguards against financial and cybersecurity risks.
The industry and the regulators
Bank of Italy Governor Fabio Panetta took center stage at the 31st Assiom Forex Congress on February 15 to spill the tea on these discussions, and highlighted that while Europe is stepping up its game with the Markets in Crypto-Assets Regulation to protect investors, the U.S. is still playing catch-up, regulating crypto on a case-by-case basis.
Panetta pointed out that the crypto industry is under intense scrutiny globally due to concerns about money laundering and financial stability.
He warned that crypto operators might take advantage of these regulatory gaps, which could lead to chaos in the financial system.
“We need to keep an eye on how these differences between the U.S. and Europe play out.”
Cooperation for the customer protection
Panetta also revealed that Banca d’Italia is teaming up with Consob, the Italian exchange regulator to keep things in check, and they’re particularly worried about liquidity risks as more users turn to online apps for their banking needs.
The goal is to ensure that any crypto service providers wanting to set up shop in Italy have robust safeguards against operational and financial risks, including the money laundering issues.
Banks aren’t want competition?
Panetta also raised alarms about Big Tech potentially entering the crypto space with their own digital tokens via user-friendly online payment platforms.
He warned that if these privately issued tokens gain traction, traditional commercial banks could be left scrambling for relevance.
So, as Italy engages with crypto firms, it’s clear they’re not just dipping their toes in, but they’re making sure the waters are safe for everyone involved.
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