Italian Legislative Decree implementing MiCAR

On 13 September, the Italian Legislative Decree No. 129 of 5 September 2024 implementing Regulation (EU) 2023/1114 on markets in crypto-assets (“MiCAR”) was published in the Official Gazette (“MiCAR Italian Decree”).

The MiCAR Italian Decree identifies CONSOB and the Bank of Italy as the competent supervisory authorities in Italy of crypto-assets issuers and crypto-asset service providers (“CASPs”), sets out applicable sanctions in cases of non-compliance and provides specific provisions for funds segregation and bankruptcy scenarios in particular cases.

The Bank of Italy is – among other things – the competent authority for prudential supervision on electronic money token (“EMT”) and asset-referenced token (“ART”) issuers and CASPs. With respect to CASPs, the Bank of Italy is also the supervisory authority for AML-CFT.

On the other hand, CONSOB is – among other things – the competent authority for overseeing crypto-assets other than EMTs and ARTs and for transparency, fair conduct, orderly trading and protection of customers in relation to ARTs and crypto-asset services. It also has supervisory powers on the prevention and prohibition of market abuse involving crypto-assets.

The MiCAR Italian Decree also provides for a specific transitional regime applicable to virtual asset service providers (“VASPs”) operating under the current Italian legal framework. More specifically, VASPs already enrolled in the register kept by Organismo Agenti e Mediatori (“OAM”) at 27 December 2024 which: 

• apply for a MiCAR authorisation as a CASP in Italy – or in another Member State – within 30 June 2025 may continue to operate according to the current VASP regime until 30 December 2025 or the date on which the authorisation is granted or refused, if earlier;

• do not submit a MiCAR application as a CASP in Italy or in another Member State within 30 June 2025 will have to terminate their business in Italy and be cancelled from the OAM register.

VASPs are required to inform their clients and make available on their website by 31 May 2025 specific information about the steps they will take to comply with MiCAR or how they will manage the closure of existing relationships.

As to the current reporting obligations towards OAM, the last report will be for  Q1 2025. VASPs will be required to keep records of all transactions carried out between 1^st April 2025 and the date of removal from the VASP register. Such data must be retained for a 10-year period.

Next steps

VASPs currently operating in Italy and enrolled in the OAM register should take into account the transitional regime provided by the MiCAR Italian Decree and take the necessary steps to apply for a CASP licence (either in Italy or in another EU member State) by 30 June 2025.

CONSOB also published a communication indicating that it is possible, for entities intending to submit a MiCAR CASP licence application, among other things, to liaise with the regulator re the information/documentation needed for the future formal request to be made after the entry into force of the MiCAR regime, as a sort of pre-filing. Entities, including VASPs, must fill-in a specific form to be sent to CONSOB for this purpose.

Authored by Jeffrey Greenbaum and Elisabetta Zeppieri.