Italy is planning to increase its surveillance of the cryptocurrency markets to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. The new regulations aim to prevent insider trading and market manipulation schemes, with fines ranging from 5,000 to 5 million euros depending on the severity of the violations. The MiCA framework, which was first passed in 2022, is forcing blockchain firms to make tough decisions, while decentralized finance (DeFi) protocols must choose between fully decentralizing their networks or submitting to the framework’s Anti-Money Laundering and Know Your Customer regulations. Fully decentralized networks are exempt from MiCA’s reporting requirements, but protocols that use intermediaries risk breaching the definition of a sufficiently decentralized network. As a result, DeFi protocols must either fully decentralize or accept a situation where users must submit verification data. Despite mounting regulatory pressure in Europe, many experts believe stablecoins have a bright future and could potentially help to mitigate shortfalls in the economy caused by overprinted fiat currencies.
Italian government plans to increase monitoring of cryptocurrency market
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