Italy warns crypto firms to meet year-end MiCA deadline or shut down

Italy's financial watchdog has issued a reminder to crypto operators and investors ahead of a key regulatory deadline, urging close attention to the Dec. 30 cutoff for compliance with the EU's Markets in Crypto-Assets Regulation (MiCA) framework.

Under MiCA's transitional rules, Italy's currently registered virtual asset service providers (VASPs) may continue operating only until Dec. 30, 2025, unless they file an application to become licensed crypto-asset service providers (CASPs) in Italy or another EU member state, according to a Thursday statement released by Consob, the country's financial market regulator.

Firms that submit applications by the deadline may continue operating until their authorization is approved or rejected, but no later than June 30, 2026. Consob also reiterated its expectations for VASPs that do not intend to seek MiCA authorization. Such firms must cease operations in Italy by Dec. 30, terminate existing contracts, and return customer assets.

Italy's present regime requires VASPs merely to register with the OAM, the national agents and brokers body. CASPs, by contrast, must obtain full authorization from supervisory authorities and are subject to ongoing oversight. 

Consob noted that the reminder aligns with a separate statement published Thursday by the European Securities and Markets Authority, which is coordinating the EU-wide transition.

Macroprudential concerns rise

Separately, Italy's Committee for Macroprudential Policies — comprising the Bank of Italy, Consob, IVASS, COVIP and the Treasury — met Thursday in Rome to review financial stability risks, according to a press release. 

While members assessed that the country's economic conditions remain broadly favorable, they warned that vulnerabilities linked to crypto assets could be increasing due to "growing interconnections with the financial system" and uneven global regulation.

The Ministry of Economy and Finance has launched an in-depth review of safeguards for retail investors' direct and indirect exposure to crypto assets, the statement said.