Regulation
Bank of Italy prepares to implement EU MiCA regulation
The Bank of Italy is preparing to implement the European Union (EU) regulation on markets in crypto assets (MiCA). This important step is aimed in particular at preserving the smooth functioning of the payment system, according to recent reports. In addition, the bank’s upcoming guidelines will clarify how the new rules will apply, signaling a transformational phase for the Italian crypto asset market.
Bank of Italy to implement MiCA
In the coming days, the Bank of Italy Governor Fabio Panetta, in a speech to the Italian Banking Association (ABI), stressed the importance of maintaining a stable payment system.
According to a recent Reuters report, the MiCA Regulation identifies electronic money tokens (EMTs) and asset reference tokens (ARTs) as viable payment methods. To put this into context, Panetta pointed out that EMTs are tied to a single official currency, while ARTs are dependent on one or more underlying assets.
According to Panetta, only EMTs can fully preserve public trust as a means of payment. These tokens can be issued by banks or electronic money institutions. This approach aims to ensure the reliability and stability of the payment system in the context of the growing popularity of cryptocurrency assets.
Furthermore, this strategic decision by the Bank of Italy underlines its commitment to integrating crypto assets into the traditional financial system. By implementing MiCA, Italy aims to create a regulated and secure environment for crypto transactions. The guidelines will provide clarity and direction to market participants, fostering trust in the ever-changing landscape of digital assets.
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Wider impact of regulation
The MiCA regulation is expected to revolutionize the European cryptocurrency market. As CoinGape Media reported earlier, Patrick Hansen, Director of Strategy and Policy at Circle, noted that MiCA will localize, institutionalize, and consolidate the European cryptocurrency market. EU Cryptocurrency
He believes MiCA will professionalize the market, forcing participants to conform or exit.
At the same time, this regulatory framework is expected to provide much-needed clarity and structure to the cryptocurrency market. By establishing clear rules and guidelines, MiCA aims to create a safer and more transparent environment for cryptocurrency operations.
Additionally, Circle’s recent announcement that its stable coinsUSDC and EURC, are now available under EU regulation, which is an important milestone. This development allows Circle the first stablecoin company to become MiCA compliant.
At the same time, the introduction of MiCA is expected to have a significant impact on the cryptocurrency industry. It will likely lead to increased institutional participation and greater market stability. By fostering a regulated environment, MiCA aims to protect investors and ensure the long-term sustainability of the cryptocurrency market.
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