Italy set to introduce tough new regulations for cryptocurrency market
A draft decree outlines penalties ranging from 5,000 to 5 million euros for offences like insider trading and unlawful disclosure of inside information.
Italy is set to strengthen its surveillance of crypto assets with new measures, including hefty fines for market manipulation, according to a draft decree reviewed by Reuters. The decree, expected to be approved by the cabinet, imposes fines ranging from 5,000 to 5 million euros for offences such as insider trading and unlawful disclosure of inside information.
The legal move matches with warnings from central banks and international bodies about the risks cryptocurrencies pose to financial stability and their potential for fraud. The plan designates Italy’s central bank and market watchdog, Consob, as the authorities responsible for overseeing cryptocurrency activities to maintain financial stability and orderly market functioning.
Why does it matter?
Cryptocurrencies allow global money transfers outside the traditional financial system, with transactions recorded on a blockchain where users are identified only by wallet addresses. However, the anonymity and decentralisation have raised concerns about their misuse, prompting Italy to implement stricter controls.
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