Italy’s financial watchdog is urging crypto firms to prepare for a major regulatory shift, reminding operators that they must meet the European Union’s Markets in Crypto-Assets Regulation (MiCA) requirements by the end of the year or prepare to leave the market.
In a notice released Thursday, Consob said all virtual asset service providers (VASPs) currently registered in Italy must either apply for authorization as crypto-asset service providers (CASPs) in Italy or another EU member state by December 30, 2025, or shut down local operations. The reminder is part of the EU’s broader effort to harmonize crypto oversight across member states.
Firms that file applications on time will be allowed to keep operating while regulators review their cases, though this transitional window cannot extend beyond June 30, 2026. Those that choose not to apply must exit the Italian market by the December deadline, close out contracts, and return customer funds.
The shift marks a clear divide between Italy’s current light-touch model, which only requires VASPs to register with the OAM, and MiCA’s stricter regime. CASPs must meet full supervisory standards, including ongoing oversight and higher compliance obligations.
Consob said the announcement aligns with a broader communication from the European Securities and Markets Authority, which is steering the EU-wide transition to MiCA.
Regulators Flag Growing Crypto-Related Risks
Italy’s Committee for Macroprudential Policies, a body that includes the Bank of Italy, Consob, IVASS, COVIP and the Treasury, also met Thursday to assess the country’s financial stability outlook. While members agreed that Italy’s economic backdrop remains generally positive, they warned that risks linked to crypto assets are becoming more evident.
According to the committee, rising connections between crypto markets and the broader financial system, combined with uneven global regulation, could pose new vulnerabilities. In response, the Ministry of Economy and Finance has launched a detailed review of protections for retail investors exposed to crypto assets directly or through investment products.
