Italy Issues Final Warning: VASPs Must Align with MiCAR by December 30
Italy just dropped a regulatory hammer on crypto firms. The deadline isn't a suggestion—it's a hard stop.
The Countdown is On
Virtual Asset Service Providers (VASPs) operating in Italy have until December 30 to get their houses in order. The Markets in Crypto-Assets Regulation (MiCAR) is now the law of the land, and the grace period is officially over. This isn't just another compliance checkbox; it's the foundational framework for the entire EU's crypto market. Think of it as the rulebook that replaces a patchwork of national guidelines with one unified playbook.
What's the Real Deadline?
Forget vague timelines. The date is December 30. Firms that haven't adjusted their operations, from custody to trading, are staring down potential enforcement. The message is clear: adapt or face the consequences. It’s a move that brings regulatory certainty—something the industry has begged for, even if it groans about the paperwork.
A New Era for EU Crypto
Italy's reminder is a bellwether for the bloc. MiCAR compliance means standardized consumer protection, transparency mandates, and operational resilience requirements. It's designed to protect investors while legitimizing the sector. For established players, it's a barrier to entry that keeps fly-by-night operations out. For everyone else, it's a complex, costly, but necessary evolution.
The bottom line? The regulatory vacation is over. The industry's plea for clarity has been answered with a thick rulebook and a firm deadline. Now comes the real test—building a sustainable market that works within the rules, not in spite of them. After all, what's the point of disrupting traditional finance if you just end up recreating its regulatory headaches?
Crypto service providers outside MiCAR must stop operations in Italy
Italian companies must re-register as Crypto Asset Service Providers, instead of their previous Virtual Asset Service Providers licensing.
If current locally approved exchange operators do not apply for a license by December 30, they must stop all operations in Italy and terminate all contracts, return crypto assets to customers, and stop even custodial holding and administration.
In general, MiCAR licenses typically take a few months to issue; however, many exchanges have obtained them in the past year as a means to enter the European market. Exchanges can start the process now and continue operating until they receive their new license.
Italy ranks around Europe’s average for crypto adoption. Recently, the country saw increased usage and trading, reflecting the shift in its tax laws. Italian exchanges have mandatory reporting, and traders owe a 26% tax on crypto earnings above 2,000 EUR.
EU decides between centralized or decentralized regulation
As Cryptopolitan reported earlier, the European Commission may push for another shift in crypto regulations, going beyond MiCAR.
The European Parliament plans to hand over more supervisory points to ESMA. Until recently, local regulators had to handle the details of MiCAR licenses. The licenses also allowed exchanges to base their business in one country, then operate across the Euro Area.
Local governments have complained about the new regulations after spending years implementing the MiCAR and other financial oversight requirements for crypto exchanges.
The European Securities and Markets Authority (ESMA) has a list of registered CASPs, which will not stop operations after December 30. Any trader may avoid confusion by checking their service provider.
Italy has 151 locally registered VASPs under OAM, which traders can also check for also having a MiCAR license. Some of the biggest VASPs with registrations in the country include Gate, Binance, Coinbase, Crypto.com, Gemini, MoonPay, Kraken, BitGo, Bitpanda and Bitstamp. Most have secured the new license in the past year.
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