Italy’s Central Bank Collaborates with Cryptocurrency Firms to Address Major Crypto and Cybersecurity Threats

The central bank of Italy and the securities regulator are actively engaging with cryptocurrency service providers to ensure robust financial and cybersecurity protections, according to Bank of Italy Governor Fabio Panetta.

During his remarks at the 31st Assiom Forex Congress on February 15, Panetta discussed significant issues related to digital finance, cryptocurrency regulation, and cybersecurity threats.

He pointed out that the global cryptocurrency landscape is facing increasing regulatory oversight due to its potential connections to money laundering and broader financial stability concerns.

Key Differences Between European and U.S. Crypto Regulations

Panetta highlighted the contrast between the regulatory frameworks in Europe and the United States.

He noted that Europe has implemented the Markets in Crypto-Assets Regulation (MiCA) to establish clear guidelines for the sector, while the U.S. continues to regulate cryptocurrencies on an individual basis, depending on whether assets are classified as securities.

He also mentioned the recent executive order on digital financial technology from the Trump administration, issued on January 23, which indicates a more open approach to incorporating cryptocurrencies into the financial system.

Panetta cautioned that regulatory inconsistencies between Europe and the U.S. could be leveraged by cryptocurrency operators, potentially jeopardizing financial integrity.

“These regulatory divergences between the United States and Europe will need to be carefully evaluated once the U.S. government’s stance becomes clearer, in order to comprehend their international ramifications,” he stated.

Il Governatore #Bankitalia Fabio #Panetta al 31° Congresso #AssiomForex @ASSIOMFOREX ieri a #Torino #ASFX25.
Leggi il suo intervento, guarda le foto e gli estratti video qui https://t.co/PnZJFLbLfz pic.twitter.com/seYoFg0bKs

— Banca d’Italia (@bancaditalia) February 16, 2025

The Bank of Italy is collaborating closely with the Commissione Nazionale per le Società e la Borsa (Consob), Italy’s financial markets authority, to assess risks associated with digital assets.

Both organizations have identified liquidity risks as more users turn to online platforms for deposits and withdrawals.

To address these concerns, they are engaging in discussions with cryptocurrency firms looking to operate in Italy.

“Banca d’Italia’s role is to ensure that these entities have adequate safeguards in place to manage strategic, operational, and financial risks, as well as risks related to money laundering and the evasion of international sanctions,” Panetta stated.

Additionally, Panetta warned against the proliferation of digital tokens issued by major technology companies, arguing that widespread acceptance of such assets could endanger the role of traditional banks.

“Commercial banks would risk losing a significant portion of their operations,” he cautioned, stressing the importance of coordinated global regulation.

Italy Strengthens Crypto Market Oversight

Last year, Italy implemented measures to enhance its oversight of cryptocurrency markets in alignment with the MiCA regulatory framework.

These initiatives aim to improve surveillance, combat insider trading, and prevent market manipulation within the digital asset space.

The new decree introduces strict measures to reduce risks associated with cryptocurrencies.

It includes substantial penalties ranging from $5,400 to $5.4 million for violations such as insider trading, market manipulation, and unauthorized disclosure of confidential information.

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