Italy’s central bank and securities regulator are actively engaging with crypto service providers to ensure proper safeguards are in place to mitigate financial and cybersecurity risks, according to Bank of Italy Governor Fabio Panetta. The discussions aim to bolster protections within Italy’s rapidly evolving digital finance landscape.
During his address at the 31st Assiom Forex Congress on February 15, Panetta highlighted critical concerns surrounding the global crypto ecosystem. He underscored the increasing regulatory scrutiny of crypto assets worldwide due to heightened risks related to money laundering and potential threats to financial stability.
Panetta also pointed to Europe’s proactive approach through the adoption of the Markets in Crypto-Assets Regulation (MiCA), which is designed to protect investors from these risks. In contrast, the United States continues to regulate crypto on a case-by-case basis, with its classification of assets depending on whether they are deemed securities.
A key issue Panetta raised is the divergence in regulatory frameworks between the European Union and the United States. He referred to a digital financial technology executive order issued during the Trump administration on January 23, which suggests a push toward integrating crypto assets into the broader financial system.
This regulatory gap, Panetta warned, could be exploited by crypto operators, potentially undermining the integrity of the financial system. He stressed the need for careful assessment of U.S. regulatory actions once they are clarified to understand the broader implications for the international financial landscape.
Additionally, Panetta revealed that Italy’s central bank is collaborating with the Commissione Nazionale per le Società e la Borsa (Consob), Italy’s securities market regulator, to establish a cohesive regulatory approach.
Risks from Big Tech’s Expansion into Crypto
Panetta also addressed the potential risks of tech giants expanding into the digital token space. The Bank of Italy and Consob have highlighted liquidity risks for traditional banks, driven by increased usage of online platforms for deposits and withdrawals. In discussions with crypto service providers operating in Italy, Panetta emphasized the need for robust safeguards to manage risks such as money laundering, operational vulnerabilities, and the circumvention of international sanctions.
He expressed concerns that the widespread circulation of digital tokens via accessible online payment platforms could negatively impact commercial banks. “Commercial banks would risk losing an important part of their operations,” Panetta warned, stressing that global regulations should be designed to prevent these tech-driven disruptions to the fiat financial system.
Italy is stepping up its efforts to regulate the crypto industry and mitigate risks through active engagement with crypto firms and regulators. By addressing regulatory differences between the U.S. and Europe and preventing potential disruptions from tech giants, the country is working to safeguard the stability and integrity of its financial system.
