#italia #Cryptocurrencies #MiCA #DeFi #Binance 🇮🇹Italy is ready to adopt more stringent rules for the crypto market, to guarantee a more reliable trading environment. Italy is preparing to strengthen supervision of cryptocurrency markets, aligning with the EU MiCA regulatory framework.
The new regulations aim to combat and punish insider trading and market manipulative schemes, introducing more severe rules and sanctions for violations.
Under the new regulations, Italy will intensify supervision of digital asset markets to ensure greater transparency and security.
The decree provides for sanctions of between 5,000 and 5 million euros depending on the severity and extent of regulatory violations, such as insider trading, illegal disclosure of inside information and market manipulation.
The implementation of the MiCA framework
First approved in 2022, the European Union's MiCA regulatory framework is confronting blockchain companies with difficult choices. The new rules require DeFi protocols to decide whether to fully decentralize their networks or comply to anti-money laundering and identity verification (KYC) regulations.
Fully decentralized networks are exempt from MiCA reporting requirements, but run the risk of not fully meeting the definition of a decentralized network as foundations and other intermediaries make use of them.
New rules for the security of crypto activities
The European Banking Authority (EBA) recently released a package of technical standards and guidelines in compliance with the provisions of the MiCA regulation.
The rules in the EBA package provide clear guidance for both asset-backed tokens (ART) and electronic money tokens (EMT), covering various key aspects such as stress test programmes, asset buffers and plans of recovery. ARTs are tokens supported by assets such as raw materials, real estate or a diversified series of assets; EMTs, on the other hand, are pegged to fiat currencies, are used for payments and maintain a stable value, very similar to stablecoins.
The EBA guidelines underline the importance of having sufficient financial resources to cover potential risks and establish parameters to identify issuers with a high degree of risk, requiring an increase in own funds reserves.
The role of the Italian authorities
According to what emerged from the decree currently being approved, the authorities designated to control the cryptocurrency market are the Bank of Italy and Consob.
This step is fundamental in order to guarantee financial stability and to prevent fraudulent and illicit activities that could compromise trust in the financial system.
The introduction of these new regulations plays a key role in allowing guarantees on the cryptocurrency market, while the sanctions and more stringent laws are intended to discourage illicit activities, favoring a more reliable trading environment.
