Published on: February 19, 2025
Italy’s central bank and securities regulator are working with crypto service providers to ensure they comply with financial and cybersecurity safeguards. Bank of Italy Governor Fabio Panetta emphasized the importance of these discussions as regulatory differences between the US and Europe continue to grow.
Speaking at the 31st Assiom Forex Congress, Panetta warned that the global crypto industry remains under regulatory scrutiny due to risks like money laundering and financial instability. While Europe has introduced the Markets in Crypto-Assets Regulation (MiCA) to protect investors, the US still takes a case-by-case approach. He noted that this divergence could allow crypto operators to take advantage of weaker regulations, potentially harming financial system integrity.
Panetta also revealed that the Bank of Italy is partnering with Consob, the agency responsible for regulating Italy’s securities market, to ensure that crypto firms have proper risk management measures in place. He stressed that without strong safeguards, digital assets could expose Italy’s financial system to strategic, operational, and financial threats.
“Banca d’Italia’s task is to ensure that these entities have adequate safeguards in place to manage strategic, operational and financial risks, as well as risks linked to money laundering and the circumvention of international sanctions,” Panetta said.
Another concern is the potential expansion of tech giants into crypto. Panetta warned that if major tech companies start issuing their own digital tokens through online payment platforms, commercial banks could lose a significant part of their business. He called for global regulations to prevent privately issued tokens from disrupting traditional financial systems.
Italy’s engagement with crypto firms signals its commitment to tightening regulations and ensuring that the digital asset industry does not pose a threat to financial stability. However, with US regulations still unclear, Panetta stressed that international cooperation is essential to prevent regulatory loopholes from being exploited.