Italy | Crypto

US President Donald Trump is bringing criminal charges against the head of the Fed in what many see as a political move motivated by a desire for lower interest rates. The US Department of Justice, at the direction of President Donald Trump, has opened a criminal investigation into Federal Reserve Chairman Jerome Powell. The DOJ alleges that the chair has misallocated funds in the course of renovations of Federal Reserve office buildings, a claim that Powell has denied. The Fed chair said that the charges were politically motivated and “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” Read more

Italy’s securities regulator shared ESMA’s finfluencer factsheet, warning social media promoters that EU rules on investment recommendations and advertising apply to crypto. Italy’s securities regulator, the Commissione Nazionale per le Societa e la Borsa (CONSOB), has amplified a new factsheet from the European Securities and Markets Authority (ESMA), warning social media finance influencers, or “finfluencers,” that European Union rules on investment recommendations and advertising apply fully to crypto and “get rich quick” content. In a Monday communication, CONSOB highlighted ESMA’s finfluencers document, published on Thursday, which warns creators that “promoting a financial product or service isn’t like promoting shoes or watches.” Pushing contracts for difference (CFDs), forex, futures, certain crowdfunding products and volatile cryptocurrencies can, according to the communication, mean losing 100% of invested capital, and influencers remain legally responsible for what they post, even if they are not f...

The Bank of Italy modeled the extreme scenario of Ether going to zero to show how market risk in Ethereum’s native token could turn into infrastructure and financial stability risks. The Bank of Italy modeled what would happen to Ethereum’s security and settlement capacity if the price of Ether fell to zero, treating the network as critical financial infrastructure rather than just a speculative crypto asset. In a new research paper titled “What if Ether Goes to Zero? How Market Risk Becomes Infrastructure Risk in Crypto,” Bank of Italy economist Claudia Biancotti examined how an extreme price shock in Ether (ETH) could affect Ethereum‑based financial services that rely on the network for transaction processing and settlement. Biancotti focused on the link between validators’ economic incentives and the stability of the underlying blockchain used by stablecoins and other tokenized assets. Read more

Italy’s markets regulator sets firm MiCA deadlines, forcing VASPs to seek authorization or exit by Dec. 30, and urges investors to check providers’ compliance plans. Italy’s securities regulator set a firm timetable for applying the European Union’s Markets in Crypto-Assets Regulation (MiCA) in the country, warning that unlicensed crypto platforms face a deadline to either seek authorization or leave the market. The move directly affects virtual asset service providers (VASPs) currently operating under Italy’s regime and the retail investors who use them.​ In a news release published Thursday, Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) reminded the market that Dec. 30 is the last day VASPs registered with the Organismo Agenti e Mediatori (OAM) can operate under the existing national framework. Read more

The Bank of Italy's vice director warned that multi-issuance stablecoins pose risks to EU financial stability and should be restricted to equivalent regulatory jurisdictions. A senior Bank of Italy official warned that stablecoins issued by multiple entities across different countries pose significant risks to the European Union’s financial system unless they are strictly limited to jurisdictions with equivalent regulatory standards. Speaking at the Economics of Payments Conference in Rome on Thursday, Chiara Scotti, vice director of the Bank of Italy, said multi-issuance stablecoins — digital tokens issued in several countries under a single brand — may increase liquidity but also bring “considerable legal, operational, liquidity and financial stability risks” if at least one issuer is outside the EU. “Although this architecture could enhance global liquidity and scalability, it poses significant legal, operational, liquidity and financial stability risks at EU level, particularly if at least one issuer is l...

The Bank of Italy has cautioned that deeper integration between crypto-assets and traditional finance could transmit price shocks to the wider economy. Governor Fabio Panetta has promoted Europe’s MiCA regime and tougher oversight of stablecoins to safeguard payments, data, and monetary sovereignty. The post Crypto-Assets and Financial Stability: The Bank of Italy’s Call for Caution appeared first on Cryptonews.

MiCA has had a limited impact on the adoption of compliant stablecoins in Europe, strengthening the need for the digital euro, Bank of Italy Governor Fabio Panetta said. Former European Central Bank (ECB) official and Governor of the Bank of Italy, Fabio Panetta, touted the digital euro as a key tool for controlling the risks of increasing cryptocurrency adoption. The Bank of Italy, on May 30, released an annual report with the governor’s concluding remarks on the state of the economy. Panetta said the European Union must move forward with the central bank digital currency (CBDC) project to maintain financial stability and meet demand for secure digital payments. “We would be remiss to think that the evolution of crypto-assets can be controlled only through rules and restrictions,” Panetta said, warning that crypto regulation alone cannot address the systemic risks posed by crypto, and that the digital euro would be key to addressing them. Read more