The Governor of the Bank of Italy has mentioned the upcoming crypto regulatory guidelines of the country in his speech, which will be in effect due to the MiCA law in Europe.
Fabio Panetta, the Governor of the Bank of Italy, touched upon crypto regulation in one of his recent speeches. He mentioned that the central bank will soon publish crypto regulatory guidelines for Italy. Meanwhile, the crypto guidelines will guide regulators in the country in enforcing Europe’s MiCA regulation.
Panetta stated in the official text of his speech, “In the coming days, we will publish a communication to the market on this issue, aimed at facilitating an effective application of MiCAR, with a view to helping to preserve the smooth functioning of the markets and of the payment system and to protect the holders of these instruments.”
Referring to crypto assets as ‘instruments’ in the above abstract, he stressed on how the crypto guidelines will help regulate the industry. He did not speak of any outright ban on crypto, but said regulations should help counter illegal activities in the space. According to Panetta, Italy’s financial regulators were responsible for overseeing its regulation.
Compared to other geographies, Europe’s stance on crypto regulation has been much more progressive. It has created a transparent regulatory regime for crypto and has also focused on the sector’s growth. Authorities in Europe have tried encouraging the use cases of crypto in a regulated manner.
Crypto regulation fosters a more transparent environment, allowing investors to make informed decisions with less fear of fraud. Additionally, regulations can introduce consumer protection measures, like requiring firms to have adequate reserves or dispute resolution mechanisms.
Effective regulation in crypto can also help encourage legitimate and innovative blockchain projects. In this way, regulation can be a force for good in the interest of crypto firms.
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