- Italy’s crypto deadline approaches—action needed for continued operations beyond 2025.
- Regulator warns VASPs to comply with MiCA rules or cease operations.
- Italy’s financial watchdog emphasizes licensing transition ahead of December deadline.
Italy’s financial regulator, Consob, has issued a crucial reminder to crypto operators and investors, urging them to meet the deadline for compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA). The reminder specifically targets the December 30 cutoff, which is fast approaching for crypto businesses operating in Italy.
License Transition Deadline for Virtual Asset Service Providers
According to Consob’s statement, virtual asset service providers (VASPs) currently registered in Italy will only be allowed to continue their operations until December 30, 2025. To maintain their business activities beyond this date, these companies must apply to be officially licensed as crypto-asset service providers (CASPs) either in Italy or another EU member state.
For businesses that file their applications by the deadline, the regulation permits them to continue operations until a decision is made on their authorization, with the final deadline for approval or rejection set for June 30, 2026.
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However, Consob also addressed companies that do not intend to seek MiCA authorization. These firms must cease operations in Italy by December 30, 2025, deadline. They are also required to terminate all existing contracts and return customer assets, ensuring compliance with the new regulatory framework.
Currently, VASPs in Italy are required only to register with the OAM (Organismo Agenti e Mediatori), Italy’s body for brokers and agents. However, under the MiCA framework, CASPs will be subject to more stringent oversight and must obtain full authorization from supervisory authorities. This shift marks a significant change in how crypto businesses will be regulated within the EU.
Italy’s Financial Stability Concerns Amid Crypto Regulation Transition
In a separate development, Italy’s Committee for Macroprudential Policies, consisting of key financial bodies such as the Bank of Italy, Consob, IVASS, COVIP, and the Treasury, met to discuss financial stability risks. The committee expressed concerns about the growing interconnectedness of the cryptocurrency market with the broader financial system, highlighting vulnerabilities as global regulatory standards remain uneven.
While Italy’s economic conditions were noted to be generally stable, the committee’s warning about crypto assets reflects increasing macroprudential concerns. The Ministry of Economy and Finance is conducting an in-depth review of the potential risks to retail investors, particularly regarding their exposure to crypto assets. This review could lead to new safeguards aimed at minimizing potential financial disruptions caused by the rapid growth of digital assets.
As the deadline for MiCA compliance nears, both the regulatory bodies and businesses must be prepared for a major shift in how the cryptocurrency market operates in Italy.
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