As part of new EU rules meant to stabilize the payment system, Fabio Panetta, the governor of the Bank of Italy, released guidelines that focus on electronic funds tokens (EMTs) issued by banks.
According to Reuter‘s report, the Bank of Italy will advise financial companies to better understand the EU’s rules on crypto assets to keep the payment system stable.
Panetta told the Italian Banking Association that the EU’s Market in Crypto Asset Regulation (MiCAR), which says that EMTs and asset-reference tokens (ARTs) can be used as payment means, might not follow Italian law. MiCAR says that companies that give out ARTs and EMTs need the right permissions to do business in the EU. But Panetta said that Italy might only allow EMTs and not ARTs.
Our assessment is that the only instruments that can fully preserve public trust as means of payment are EMTs, which can be issued by banks or electronic money institutions.
Fabio PanettaItaly’s MiCAR decision pending
It’s not yet official that Italy will selectively accept MiCAR, but the country is planning harsher punishments for crypto-related crimes to stop market manipulation. Fines for insider selling and disclosing confidential information without permission could range from €5,000 to €5 million ($5,400 to $5.4 million).
The new decree gives the Bank of Italy and market regulator Consob control over crypto operations, giving them the power to keep the market and the economy stable. In the beginning of 2023, the Bank of Italy emphasized the need for a strong, risk-based regulatory system for stablecoins to stop “runs” on digital assets that could cause instability. They also stressed the importance of regulating stablecoin issuers because they were connected to decentralized finance.
