Italy is preparing to take strict measures to combat market manipulation in the cryptocurrency market as part of broader efforts to strengthen risk supervision in the industry.
According to a resolution shared by Reuters, expected to be approved by the cabinet, fines ranging from €5,000 to €5 million are proposed for violations such as insider trading, unlawful disclosure of insider information, and market manipulation.
This initiative is in line with the upcoming regulatory framework of the European Union for crypto asset markets (MiCA), which requires each member state to appoint local regulators known as national competent authorities (NCA) to oversee the crypto market.
The draft resolution designates the Bank of Italy and Consob, the market supervisory authority, as NCAs responsible for overseeing the sector.
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Italy has been preparing to enter MiCA for some time. However, according to the central bank’s governor, this is happening despite research showing that only about 2% of Italian households hold modest amounts of cryptocurrencies, and Italian financial intermediaries have minimal exposure to the market.
