Italy to Increase Surveillance of Crypto Market With Fines as High as 5M Euros: Reuters

Italy is increasing surveillance on risks linked to the crypto asset market.

The draft decree reviewed by Reuters stated that fines as high as 5 million euros ($5.4 million) could be imposed.

Italy is preparing to take measures including high fines for those manipulating the crypto asset market as part of a broader plan to strengthen oversight of risks linked to the sector, Reuters reported, citing a draft decision it reviewed.

The document is expected to be approved by the cabinet today and will include fines of between 5,000 euros ($5,400) and 5 million euros for insider trading, illegal disclosure of inside information or market manipulation, the report said.

Countries in the European Union are preparing to implement the bloc’s regulatory framework for the sector known as CryptoAsset Markets (MiCA). Part of this process is deciding which local regulators, called National Competent Authorities (NCAs), will help regulate crypto.

The Reuters report stated that the draft decree identifies Italy’s central bank and market watchdog Consob as the relevant authorities.

Italy has been preparing to follow the framework for some time; the central bank governor added with the caveat that he was doing so despite a survey showing that only 2% of Italian households hold “modest amounts of crypto on average.” Italian intermediaries’ access to the market was also very limited.

Italy introduced mandatory registration for crypto companies operating in the country but approved 73 firms as virtual currency service providers without conducting proper checks to ensure they are safe for investors, CoinDesk previously reported.

Optimism about cryptocurrency in Italy is also reflected in the moves of cryptocurrency wallet company Conio, which is collaborating with Coinbase (COIN) to bring digital assets to Italian banks and financial institutions.

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