Italy’s central bank will soon share guidelines on how the country should apply the EU’s MiCA crypto laws, with its governor criticizing Bitcoin and Ethereum as “unbacked” cryptocurrencies.
The Bank of Italy is set to publish guidelines on implementing the European Union’s new crypto regulations, known as the Markets in Crypto-Assets Regulation (MiCA), “in the coming days,” according to Governor Fabio Panetta.
Panetta stated that these guidelines are intended to ensure effective application of MiCA and to “protect the holders” of certain cryptocurrencies. In his speech to the Italian Banking Association on July 9, he emphasized that MiCA defines two main types of tokens: asset-reference tokens (ARTs) and electronic money tokens (EMTs).
He explained that the Bank of Italy believes only EMTs can fully function as a means of payment while maintaining public trust. EMTs are linked to a single official currency, such as a US dollar-backed stablecoin. In contrast, ARTs are pegged to one or more assets, like the gold-backed token PAX Gold (PAXG).
Panetta singled out Bitcoin and Ether as examples of “unbacked crypto–assets,” claiming they “have no intrinsic value” and are “akin to a gamble.” He argued that the primary goal of crypto investors is to sell their assets at higher prices and suggested that they might use these assets to evade taxes or bypass regulations designed to prevent money laundering and terrorist financing.
The upcoming guidelines from the Bank of Italy are expected to provide clarity on how these new regulations will be enforced, aiming to balance innovation in the crypto space with necessary protections for investors and the financial system.
Summary Review: The Bank of Italy’s upcoming guidelines on the application of the EU’s MiCA crypto laws represent a significant step towards regulating the cryptocurrency market in Italy. Governor Fabio Panetta’s remarks highlight the central bank’s cautious stance towards “unbacked” cryptocurrencies like Bitcoin and Ether. By emphasizing the potential risks associated with these assets, the guidelines aim to protect investors and maintain public trust in the financial system. This move is expected to facilitate a smoother implementation of MiCA regulations and ensure a more secure environment for cryptocurrency transactions in Italy.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
