Italy’s central bank and securities regulator have discussed ways to implement appropriate safeguards against financial and cybersecurity risks in the crypto services sector.
Fabio Panetta, Governor of the Bank of Italy, highlighted these efforts during the 31st Assiom Forex Congress on February 15, emphasizing the need to manage risks associated with crypto assets, such as money laundering and threats to financial stability.
The regulatory landscape for crypto assets varies greatly between Europe and the United States. While Europe has adopted the Markets in Crypto-Assets Regulation (MiCA) to enhance investor protection, the US continues to assess crypto assets individually, determining their classification as securities if necessary.
This difference in regulatory approach was underscored by Panetta in light of the Trump administration’s executive order on digital financial technology, dated January 23, which indicated an openness to integrating crypto assets into the financial system.
Panetta expressed concern that operators in the crypto space could exploit these regulatory inconsistencies, potentially compromising the integrity of the financial system. He stressed the need to carefully assess these differences once U.S. authorities clarify their positions, in order to understand the international implications.
In his speech, Panetta also mentioned the ongoing collaboration between the Bank of Italy and the Commissione Nazionale per le Societa e la Borsa (Consob), Italy's securities market regulator.
The partnership aims to ensure that crypto service providers wishing to operate in Italy have robust mechanisms in place to address a range of risks, including those related to strategic, operational and financial aspects, as well as risks related to money laundering and evasion of international sanctions.
Panetta further highlighted the potential threat posed by Big Tech companies entering the crypto space. He warned of risks to commercial bank liquidity, as users increasingly turn to online applications to deposit and withdraw funds.
Panetta called for global regulation to prevent tech giants from distributing digital tokens through widely accessible online payment platforms, warning that commercial banks could lose large parts of their operations if privately issued tokens gain widespread acceptance.
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