Italy is considering imposing fines up to $5.4 million for crypto insider trading and market manipulation, according to a draft decree. The legislation would empower the Bank of Italy and market regulator Consob to oversee crypto activities.
Earlier in 2023, the Bank of Italy stressed the need for robust regulation around stablecoins to prevent market instability. The central bank also prepared for the EU’s upcoming Markets in Crypto-Assets Regulation (MiCA). At that time, only about 2% of Italian households held small amounts of crypto.
This proposed legislation stands out as Italy’s most stringent move yet to curb crypto market abuses. The increased penalties aim to enhance market integrity and financial stability. If successful, it could set a precedent for other countries grappling with crypto regulation.
