Bank of Italy prepares to implement EU MiCA regulation

The Bank of Italy is preparing to implement the European Union (EU) Markets in Crypto-Assets (MiCA) regulation. Interestingly, this significant move is aimed at preserving the smooth functioning of the payment system, according to recent reports. Furthermore, the bank’s upcoming guidelines will clarify how the new rules will be applied, signaling a phase of transformation for the Italian cryptocurrency market.

Bank of Italy to implement MiCA

In the coming days, the Bank of Italy will publish guidelines on the EU MiCA regulation. 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. For context, Panetta emphasized that EMTs are tied to a single official currency, while ARTs are dependent on one or more underlying assets.

Meanwhile, according to Panetta, only EMTs can fully maintain 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 face of the growing popularity of cryptocurrency assets.

In addition, this strategic move 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 market participants with clarity and direction, strengthening confidence in the evolving digital asset landscape.

Also Read: Binance Extends Support for FET, FLOKI, NOT, ZRO. Will the Gains Continue?

Broader impact of regulation

The MiCA regulation is set to revolutionize the European cryptocurrency market. As previously reported by CoinGape Media, Patrick Hansen, Director of Strategy and Policy at Circle, noted that MiCA will localize, institutionalize, and consolidate the EU cryptocurrency market

landscape. He believes MiCA professionalizes the market, forcing participants to conform or leave.

Meanwhile, this regulatory framework is expected to bring 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.

In addition, Circle’s recent announcement that its stablecoins, USDC and EURC, are now available under EU regulations is a significant milestone. This development makes Circle the first stablecoin company to become MiCA compliant.

Meanwhile, the introduction of MiCA is expected to have far-reaching implications for 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 stability of the cryptocurrency market.

Also Read: German Government Launches Another Massive Bitcoin Sale, But There’s a Catch