Italy’s Consob Sounds Alarm as MiCAR Deadline Looms: Crypto Crackdown Imminent
Italy's financial watchdog, Consob, is flashing red lights across the crypto landscape. With the European Union's Markets in Crypto-Assets Regulation (MiCAR) deadline bearing down, the regulator is putting firms on notice: get compliant or get out.
The Countdown Begins
MiCAR isn't just another piece of paperwork—it's the EU's blueprint for a unified crypto rulebook, and the clock is ticking for full implementation. Consob's warning serves as a final siren for any operator still dragging its feet. The message is blunt: adapt your business model to the new transparency and investor protection standards, or prepare to exit the market.
A New Era of Enforcement
This isn't a gentle nudge; it's a line in the digital sand. The warning signals a decisive shift from regulatory guidance to active enforcement. Expect heightened scrutiny on licensing, stablecoin issuance, and consumer disclosures. For firms, it means a frantic race against the calendar to audit operations, secure approvals, and overhaul compliance frameworks.
The industry's usual playbook of moving fast and breaking things is about to meet its regulatory match. While some will grumble about innovation being stifled, others see it as the necessary price of admission for mainstream legitimacy—a classic trade-off where Wall Street's rulebooks finally colonize the crypto frontier.
Precautions advised for investors
Consob urges investors to check whether the crypto platforms they use will be authorised to operate in Italy after 30 December 30.
This can be done by consulting the Organismo Agenti e Mediatori (OAM) register of VASPs or the European Securities and Markets Authority (ESMA) register of authorized Crypto-Asset Service Providers (CASPs).
Investors should:
- Check if their platform is authorized under MiCAR.
- Request clear information from the platform about its plans for compliance.
- Withdraw money or cryptoassets if the platform is not compliant. Leaving assets on unauthorized platforms creates risk.
Obligations for VASPs
VASPs operating in Italy must take immediate action to comply with MiCAR regulations. Those not applying for authorisation are required to cease operations by December 30, 2025, return all customer funds and crypto-assets, and terminate all services, including custody and administration.
Platforms that wish to be compliant should communicate plans with due clarity to customers or give instructions for orderly account closure.
Timeline for compliance
Consob says it has already issued multiple communications to help operators prepare for MiCAR, including guidance in September 2024, a notice in July 2025, and a reminder in October 2025.
The December 30 deadline marks the end of the transitional period, after which platforms not authorized under MiCAR must stop operations.
For those who submit authorization applications by this date, the final cut-off is 30 June 2026. Until then, they may continue their activities only until the authorization is either granted or refused.
Italy’s deadline aligns with the EU’s broader effort to regulate crypto markets. Other member states are following similar schedules to ensure consistent standards and investor protection across Europe.
Consob has been advising the market for months with reminders and instructions. The goal is to protect investors and support a smooth transition to the new regulatory system.
Why it matters
Smaller crypto platforms might find it difficult to comply with the new MiCAR rules and may be compelled to exit the Italian market. Investors WOULD have fewer places where they can actually operate or hold crypto-assets.
It also raises the risk for anyone keeping funds on unauthorized platforms. Therefore, it is now more important than ever to check a platform’s authorization status and make sure assets are SAFE ahead of the deadline.
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