Italy is preparing to introduce comprehensive guidelines regulating cryptocurrencies under the European Union’s Markets in Crypto-Assets Regulation (MiCA) law. The Bank of Italy will soon publish guidelines on implementing the MiCA law.
These new rules aim to maintain the stability of Italy’s financial systems while fostering innovation and safeguarding consumer protection.
Italy’s New Crypto Rules Seek to Clarify the Use of EMTs vs. ARTs
Fabio Panetta, Governor of the Bank of Italy, announced this during a speech at the Italian Banking Association (ABI). Panetta highlighted the role of electronic money tokens (EMTs) and asset reference tokens (ARTs) under the MiCA framework.
“Our assessment is that the only instruments that can serve as means of payment fully preserving the public’s trust are EMTs, electronic money tokens, which can be issued by banks or electronic money institutions,” Panetta stated.
Read more: What Is Markets in Crypto-Assets (MiCA)?
EMTs, whose value is tied to a single official currency, are seen as more stable and trustworthy for payments. In contrast, ARTs derive their value from multiple underlying assets, making them more volatile but still useful in specific contexts. The Bank of Italy’s guidelines aim to clarify and establish a consistent legal framework for these digital assets.
Italy’s new guidelines mark an important step in aligning its crypto regulations with European standards. As the first explicit regulation for crypto assets in the EU, MiCA offers legal clarity for stakeholders by categorizing digital assets, specifying regulations, and designating accountability for enforcement.
MiCA also addresses various challenges by ensuring a level playing field for crypto institutions within the EU and eliminating regulatory fragmentation among member states. Its primary objective is safeguarding investors, combating fraudulent activities, and upholding adherence to anti-money laundering (AML) and financial regulations. The financial industry will closely watch the implementation of these guidelines, as they represent a significant move towards a more regulated and secure use of digital assets in the region.
As the MiCA regulation takes shape, industry experts weigh in on its potential impact on market dynamics. While some believe MiCA will boost investor trust, others argue it is too strict and overlooks the benefits of blockchain.
“MiCA will encourage institutional players to enter the market. This may have beneficial effects on the market, thanks to the inflow of new capital as well as the increase of investor trust in this industry. However, the regulation is particularly strict and do not take much in account of the benefits of blockchain in terms of security and trust. A softer regulation would have allowed many more players to enter the market with positive effects for competition, investors, and innovation,” Salvatore Luciano Furnari, Lawyer & Head of Web3 Department at Lener & Partners, told BeInCrypto.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
Several crypto companies, including major players like Binance, have already started adjusting their operations to comply with the new regulations. Other prominent crypto firms, such as BingX, are also exploring partnerships with third-party custodians to enhance the protection of user assets. Vivien Lin, BingX’s Chief Product Officer, told BeInCrypto that this initiative aims to foster a secure and transparent trading environment while promoting innovation in the crypto sector.
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