Italy is set to implement stricter regulations for the cryptocurrency market, including hefty fines for market manipulation and insider trading.
Italy tightens cryptocurrency regulations to combat market manipulation and insider trading
According to a Reuters report, the Italian government is preparing to introduce measures to strengthen oversight of cryptocurrency activities.
The proposed decree, which is expected to receive Cabinet approval, sets fines ranging from 5,000 to 5 million euros ($5,400 to 5.4 million) for insider trading, unauthorized disclosure of confidential information, and market manipulation in the cryptocurrency sector.
Within the framework of the European regulation introduced last year, the new scheme appoints the Italian Central Bank and market regulator CONSOB as the primary authorities for supervising cryptocurrency activities. These institutions will be responsible for ensuring financial stability and monitoring cryptocurrency risks.
The move comes as central banks and international organizations have expressed concerns about cryptocurrencies due to their lack of intrinsic value and the potential to threaten macroeconomic and financial stability. Global investigations have also indicated that cryptocurrencies can facilitate fraudulent activities.
Italy strengthens cryptocurrency oversight to address digital asset risks
Cryptocurrencies allow users to transfer money across borders without relying on traditional financial institutions. The underlying blockchain technology keeps a record of transactions, with senders and receivers identified only by their wallet addresses, which are unique combinations of letters and numbers.
With these regulations, Italy aims to create a safer and more regulated environment for cryptocurrency activities within its borders.
Cryptomode reported that the Vatican Library recently announced plans to expand web3 adoption by issuing non-transferable and non-fungible tokens (NFTs) to supporters of its manuscript collections. This initiative, currently targeting donors from Italy, will provide access to high-resolution images of the manuscripts and allow users to explore the library virtually through immersive extended reality (XR) technology in the future.
The proposed Italian crypto regulations and the Vatican’s NFT program represent different approaches to blockchain technology and digital assets. While the government focuses on risk mitigation and market safety, cultural institutions are exploring new ways to leverage these technologies to preserve and enhance historical artifacts.