Italy’s Banca d’Italia and Consob are in talks with crypto firms to ensure compliance, as regulatory gaps widen between the EU and US.
Italy’s central bank and securities regulator are in discussions with crypto service providers to ensure adequate safeguards against financial and cybersecurity risks, according to Bank of Italy Governor Fabio Panetta.
Panetta discussed key issues related to crypto assets, digital finance and cybersecurity risks pertaining to global and European regulations at the 31st Assiom Forex Congress on Feb. 15.
According to Panetta, the crypto ecosystem is under global regulatory scrutiny due to risks including money laundering and financial stability concerns.
He emphasized that while Europe has adopted the Markets in Crypto-Assets Regulation (MiCA) to protect investors, the United States continues to regulate crypto on a case-by-case basis depending on whether assets are classified as securities.
US vs. EU regulatory divergence on crypto
Panetta pointed to the differences in approach between Europe and the US, noting that the Trump administration’s executive order on digital financial technology, issued on Jan. 23, suggests an inclination toward integrating crypto assets into the financial system.
Panetta said that crypto operators may exploit the regulatory differences and hamper the integrity of the financial system.
In his speech, Panetta also revealed an ongoing partnership between the central bank of Italy and the Commissione Nazionale per le Societa e la Borsa (Consob), an agency responsible for regulating the Italian securities market.
Threat from Big Tech’s potential crypto expansion
The Bank of Italy and Consob highlighted banks’ liquidity risks as users increasingly use online applications to deposit and withdraw money.
Panetta wants global regulations to prevent tech giants from circulating digital tokens via easily accessible online payment platforms.
“Commercial banks would risk losing an important part of their operations,” he said, warning against consequences to the fiat financial system if privately issued tokens were to attain widespread adoption.