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Italy strengthens control over risks related to cryptocurrencies and tightens sanctions
ROME (Reuters) – Italy plans to take measures to strengthen oversight of risks linked to cryptoassets, including large fines for those who manipulate the market, according to a draft decree reviewed by Reuters on Thursday.
The decree, which is expected to be approved by the government later Thursday, includes fines of between 5,000 and 5 million euros ($5,400-5.4 million) for insider trading, illegal disclosure of inside information or market manipulation.
Central banks and international bodies have warned that cryptocurrencies have no underlying value and pose risks to macroeconomic and financial stability, with investigations around the world also showing they can pave the way for fraud.
The project, which fits within the framework established by a European regulation last year, designates the Italian central bank and the market supervisor Consob as the authorities that supervise cryptocurrency activities to preserve financial stability and ensure a “functional order of the markets”.
Cryptocurrencies allow people to send money around the world without using the traditional financial system.
The underlying blockchain technology creates a ledger of transactions where senders and recipients are identified only by their wallet addresses, which are a string of letters and numbers.
($1 = 0.9332 euros)
(Reporting by Giuseppe Fonte and Angelo Amante; Editing by Jacqueline Wong)