Italy strengthens cryptocurrency risk regulation through stricter sanctions, EU approves 14th sanctions package against Russia

Italy will step up monitoring of crypto-asset risks with a new decree that imposes hefty fines for market manipulation. The draft decree, expected to be approved by the cabinet, proposes fines of €5,000 to €5 million ($54 million to $5.4 million) for insider trading, illegal disclosure of insider information or market manipulation.

Central banks and international organizations have highlighted the risks of cryptocurrencies, noting that they lack intrinsic value and pose a potential threat to macroeconomic and financial stability. Italy’s new measures are in line with a European regulatory framework established last year that designated the central bank and market regulator Consob as the authorities responsible for overseeing cryptocurrency activities in order to safeguard financial stability and market order.

Cryptocurrencies allow global transactions outside the mainstream financial system. The blockchain technology on which these digital assets rely records transactions, identifying senders and recipients only by wallet addresses, which are anonymous strings of letters and numbers.

Despite limited cryptocurrency usage in Italy, the country has approved 73 cryptocurrency services.

EU approves 14th sanctions package against Russia

Meanwhile, today the European Union has approved its 14th sanctions package against Russia, which includes a ban on the re-export of Russian liquefied natural gas (LNG) within EU waters. The measure is part of the EU's ongoing response to Russia's war in Ukraine and aims to close loopholes in existing sanctions.

After more than a month of debate, the sanctions package was modified after Germany requested an impact assessment. One key proposal that was abandoned was to require subsidiaries of EU companies in third countries to prevent the re-export of their products to Russia. This measure may be reconsidered in the future.

The ban on transshipments is the first restriction the EU has imposed on LNG. However, experts say the measure has limited impact because Europe still buys Russian gas and gas transshipped to Asia through EU ports accounts for only about 10% of Russia's total LNG exports.

While the new sanctions reflect the EU's commitment to pressure Russia, their limited direct impact on LNG exports highlights the complexity of reducing dependence on Russian energy supplies.