Italy reportedly to step up regulation of cryptocurrency risks

Source: Cailian Press

According to media reports, Italy plans to take measures to strengthen supervision of risks associated with crypto assets, including heavy fines for market manipulators.

According to a draft seen by the media, the Italian government will impose fines of 50 million to 5 million euros ($54 million to $5.4 million) for insider trading, illegal disclosure of insider information or market manipulation. The decree will be approved by the Italian cabinet later on Thursday local time.

The plan is implemented within the framework set by European regulators last year, and will be implemented by the Italian central bank and market regulator Consob as institutions to regulate cryptocurrency activities to maintain financial stability and ensure the orderly operation of the market.

The advantage of cryptocurrency is that it allows people to send money around the world without using the mainstream financial system, but it has also attracted the attention of regulators. Central banks and international institutions have warned that cryptocurrencies have no underlying value and pose risks to macroeconomic and financial stability.

In May this year, the U.S. House of Representatives passed the 21st Century Financial Innovation and Technology Act (FIT21 Act). This is a landmark legislation for the crypto market, marking a possible sea change in the U.S. attitude toward the crypto asset sector.

The bill will tailor a disclosure and registration system for digital asset companies, and will transfer the agency responsible for regulating the industry from the U.S. Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).

This was interpreted by the market as a boon to the digital asset industry, which had previously complained that the SEC was imposing traditional disclosure systems on them, which was not feasible.

However, the FIT21 bill was passed by the Republican-led House of Representatives and will next be voted on by the Democratic-controlled Senate, where it will be difficult to successfully pass the Senate. In addition, U.S. President Biden has clearly expressed his opposition to the bill.