Italy is tightening laws on the crypto sector

Italy is poised to introduce tough measures to combat crypto market manipulation as part of a wider effort to strengthen risk oversight in the sector.

В the decree , shared by Reuters, which is expected to be approved by the cabinet, proposes fines of €5,000 to €5 million for offenses such as insider trading, unlawful disclosure of inside information and market manipulation.

This initiative is in line with the upcoming European Union Regulatory Framework for Crypto Asset Markets (MiCA), which obliges each member state to appoint local regulators known as National Competent Authorities (NCAs) to oversee the crypto market.

The draft decree designates the Bank of Italy and Consob, the market watchdog, as NCAs responsible for overseeing the sector.

For some time, Italy has been preparing to entered MiCA. However, according to the governor of the central bank, this is not the case it happens despite a survey showing that only around 2% of Italian households own modest amounts of cryptocurrency, and Italian financial intermediaries have minimal exposure to the market.