Reuters saw a draft rule that says Italy is considering making the fines for crypto-related crimes much higher to stop people from manipulating the market. Penalties for crimes like insider trade, giving out inside information without permission, and market manipulation could range from €5,000 to €5 million ($5,400 to $5.4 million).
If the draft decree becomes law, it would give the Bank of Italy and the market regulator Consob the power to monitor crypto actions. These groups would keep the economy stable and ensure markets work smoothly in the cryptocurrency sector, which is becoming more famous and volatile.
The initiative comes from growing worries about how the crypto market, which has seen a rise in individual and institutional involvement in recent years, could be manipulated. Italy wants to stop illegal actions that hurt the market and investors’ trust by making the penalties harsher.
Italy’s Proposed Fines Align With EU Efforts
These suggested fines are much harsher than the current penalties and are in line with other countries that are making it harder to get digital assets. The move is part of a larger effort in the European Union to ensure that cryptocurrency regulations are consistent.
Some people in the business world think that these kinds of steps could make the crypto market more open and trustworthy. But they also say that policing might be hard and that clear rules are needed to ensure people follow them.
While the government thinks about the decree, people in the crypto business are closely watching what’s going on. If passed, the law could be a model for other EU countries that want to make similar changes to their regulations.
The plan shows that Italy is serious about fighting financial crimes and keeping investment safe in the digital economy, which is changing quickly. The Italian crypto market is growing quickly, but the final order and its effects are still unknown. From the draft order, it’s clear that the Italian government is aware of the dangers of crypto market manipulation and is ready to take strong steps to stop them.
