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.
The proposed legislation, expected to be approved by the cabinet, suggests fines ranging from €5,000 to €50,000 for illegal activities such as insider trading, illegal disclosure of insider information, and market manipulation, according to a Reuters report.
This measure aligns with the upcoming European Union framework for regulating the cryptocurrency market, known as the Markets in Crypto-Assets (MiCA), which requires each member state to appoint a local regulatory authority, known as a National Competent Authority (NCA), to oversee the cryptocurrency market.
The draft law designates the Bank of Italy and the market regulator Consob as the NCAs responsible for regulating the industry.
Read more:
Another state in the United States has revoked Binance.US’s license
Italy has been preparing to enter MiCA for some time. However, the central bank president stated that this is not the case, despite a study showing that only about 2% of Italian households own a small amount of cryptocurrency and Italian financial intermediaries have limited exposure to the market.
