Italy Enhances Crypto Risk Monitoring and Increases Penalties, Draft Reveals

Italy is set to introduce new measures to enhance oversight of risks associated with cryptoassets, according to a draft decree reviewed by Reuters on Thursday. The decree, which is expected to receive cabinet approval later in the day, proposes fines ranging from €5,000 to €5 million ($5,400 to $5.4 million) for offenses such as insider trading, unauthorized disclosure of inside information, or market manipulation.

This move aligns with a European regulation established last year and aims to ensure financial stability and market integrity. Italy's central bank and market regulator, Consob, will be responsible for supervising cryptocurrency activities under this framework.

Central banks and international organizations have expressed concerns over cryptocurrencies, highlighting their lack of intrinsic value and potential risks to macroeconomic and financial stability. Additionally, global investigations have revealed the susceptibility of cryptocurrencies to fraudulent activities.

Cryptocurrencies facilitate global money transfers outside the conventional financial system, with blockchain technology providing a transaction record where parties are identified by their wallet addresses.