Italy to Publish Guidelines on EU Crypto Rules

Italy’s central bank will soon release guidelines for implementing the European Union’s crypto regulations, Bank of Italy Governor Fabio Panetta announced on July 9.

The guidelines aim to facilitate the effective application of the EU’s Markets in Crypto-Assets Regulation (MiCA) and protect cryptocurrency holders, according to Panetta’s speech to the Italian Banking Association.

MiCA categorises tokens into two primary types for payment purposes: asset-reference tokens (ARTs) and electronic money tokens (EMTs). Panetta emphasised that only EMTs can fully function as a means of payment while maintaining public trust. EMTs are linked to a single official currency, such as a USD-backed stablecoin, whereas ARTs are pegged to multiple assets, like the gold-backed token PAX Gold (PAXG).

Panetta described Bitcoin and Ether as “unbacked crypto-assets,” arguing they have no intrinsic value and are akin to gambling. He stated that the primary goal of crypto investors is to sell at higher prices, potentially using these assets to evade taxes and regulations against money laundering and terrorist financing.

“Clearly, they do not possess the characteristics that make them suited to perform the three inherent functions of money: a means of payment, store of value, and unit of account,” Panetta added.

He acknowledged that while the number of investors in “unbacked” cryptocurrencies is currently low, it is not negligible and could grow in the future.

In late June, Reuters reported that the Italian government plans to increase surveillance on crypto markets to comply with MiCA. A new decree outlines fines ranging from €5,000 to €5 million for violations, including market manipulation and insider trading.