Governor Fabio Panetta of the Bank of Italy recently announced plans to issue new guidelines in response to forthcoming European Union crypto regulations. These guidelines are intended to align with the EU’s Markets in Crypto-Assets Regulation (MiCA) and safeguard the interests of virtual currency holders.
MiCA categorizes tokens into two main types: electronic money tokens (EMTs) and asset-reference tokens (ARTs). Governor Panetta highlighted that EMTs, which are backed by a single official currency like stablecoins, are viewed by the Bank of Italy as the only tokens suitable for use as a means of payment while maintaining public trust.
In contrast, ARTs, which are pegged to multiple assets such as gold-backed tokens, do not meet the same criteria.
During his address, Panetta expressed skepticism towards well-known cryptocurrencies like Bitcoin and Ether, labeling them as “unbacked crypto-assets.” He criticized these assets for lacking inherent value and raised concerns about investors using them to evade taxes and circumvent anti-money laundering laws.
Panetta argued that such virtual currencies do not fulfill the essential functions of money—acting as a store of value, a medium of exchange, and a unit of account. Despite acknowledging the current limited adoption of unbacked crypto assets, he cautioned that their popularity could grow, necessitating stricter regulatory oversight.
Italy’s approach to regulating crypto assets aligns with MiCA guidelines, which include stringent penalties for offenses like insider trading and market manipulation. Unlike some EU nations, Italy has opted not to establish its own comprehensive regulatory framework for cryptocurrencies but instead mandates registration of crypto service providers for anti-money laundering purposes.
In a notable development, Circle, a global financial technology company, has achieved regulatory approval under MiCA for its stablecoins USDC and EURC. This makes Circle the first stablecoin issuer to comply with the new EU regulations, reassuring investors about the legitimacy and compliance of their stablecoin holdings in the evolving regulatory landscape.
