Coinspeaker Bank of Italy to Issue New Guidelines for Crypto Regulation in Preparation for MiCA
The Bank of Italy is gearing up to introduce regional guidelines that align with the European Union’s Markets in Crypto-Assets (MiCA) regulation, which aims to establish a comprehensive regulatory framework for the digital asset sector within the EU.
According to a Reuters report, Governor Fabio Panetta announced that the Italian central bank will publish these guidelines in the coming days during his speech to the Italian Banking Association (ABI) on Tuesday.
Preserving Payment System Integrity
The rules will focus on how to apply the upcoming EU’s landmark crypto regulatory framework on digital assets while preserving the regular functioning of the country’s payment system.
Panetta highlighted the importance of ensuring that payment systems remain reliable and trustworthy under the new regulatory framework. According to him, the guidelines will provide clarity and direction on implementing MiCA’s provisions, ensuring a smooth transition for the Italian crypto market.
The upcoming MiCA law recognizes Electronic Money Tokens (EMTs) and Asset-reference Tokens (ARTs) as viable payment methods. However, the instruments must meet certain criteria before they can be used for payments.
Only EMTs Can be Used for Payments
The bank also found, after its investigation, that the only instruments that can be used for payments and still preserve the country’s payment system are EMTs. These offerings are issued by banks and digital asset service providers (VASPs).
“Our assessment is that the only instruments that can serve as means of payment while fully preserving the public’s trust are EMTs, electronic money tokens, which can be issued by banks or electronic money institutions,” Panetta said.
The soon-to-be-released guidelines will provide a roadmap on how the EMTs and their providers can be issued to maintain and preserve Italy’s public trust.
Industry Readiness for MiCA
As the crypto market continues to await the MiCA regulation to be implemented by the end of July, many companies are improving their product offerings to comply with the law.
Recently, crypto exchange Binance informed its European users to prepare for the upcoming rules as it plans to comply with MiCA to continue offering its services in the region.
The exchange said it “aims to fulfill MiCA objectives smoothly by transitioning users from Unauthorized Stablecoins to Regulated Stablecoins over time, as more Regulated Stablecoins become available in the market.”
While Binance is still preparing its product offerings to align with MiCA, stablecoin issuer Circle has obtained an operational license through its France unit to offer its services as an EMT in compliance with the MiCA rule.
The firm is the first crypto company to receive such authorization. Circle said its two stablecoins, USDC and EURC, are eligible to be used within the French border.
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Bank of Italy to Issue New Guidelines for Crypto Regulation in Preparation for MiCA