ITALY Law and Practice Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Studio Patti
A further area of development concerns blockchain- based models linked to the energy sector. In Italy, cer- tain projects are exploring the tokenisation of rights associated with access to renewable energy produc- tion capacity. These structures are typically designed to grant users contractual rights to benefit from the output of renewable energy installations, for exam- ple through economic returns or reductions in energy costs. While still subject to careful regulatory classifi- cation, these initiatives reflect a broader trend toward the application of distributed ledger technology to real-economy assets and infrastructure. Italy demonstrates significant technical expertise in DeFi. Italian teams are active in smart contract devel- opment, security auditing and protocol design. From a regulatory perspective, these activities are often channelled into hybrid models incorporating elements capable of interfacing with the regulated perimeter. Looking ahead, the most significant near-term devel- opment is likely to be the transition from preparatory compliance efforts to the granting of the first MiCAR authorisations and the commencement of fully super- vised operations. At the same time, the DLT-based financial instruments framework is expected to mature, providing further opportunities for regulated tokenisation initiatives. In this context, two trends are likely to emerge. First, there will be increased participation by traditional financial institutions, either as applicants for authori- sation or as partners in regulated projects, driven by greater regulatory certainty. Second, competitive pressures are likely to intensify, leading to consoli- dation among smaller operators for whom the costs of compliance, capital requirements and governance standards may prove burdensome. A key legal issue underpinning these developments is the classification of tokenised assets. The distinc- tion between crypto-assets falling within the scope of MiCAR and financial instruments subject to existing capital markets legislation is of fundamental impor- tance. The same technological infrastructure may support either classification, depending on the rights attached to the token and the manner of its distribu- tion. Consequently, considerable attention is being
devoted to the legal structuring of products, with classification analysis becoming a central element of business strategy. In the area of intellectual property, Italian practice is evolving without consolidated case law on blockchain disputes. For NFTs, there is growing recognition that the token does not confer ownership of underlying IP. Market practice has shifted toward structured contractual approaches, emphasising clear licensing terms and transparent communication to users. In sum, the Italian approach to crypto-assets and distributed ledger technology is characterised by a progressive integration into the existing financial regulatory framework. The emphasis on governance, investor protection and supervisory clarity suggests that future market development will favour opera- tors capable of demonstrating robust compliance structures and operational resilience within a clearly defined legal perimeter. 1.1.2 Regulatory Sandbox Italy has introduced a structured regulatory sandbox to allow fintech operators to test innovative solutions within a controlled environment, while ensuring appro- priate levels of investor and consumer protection. The sandbox applies across the banking, financial and insurance sectors and involves co-ordinated supervi- sion by Consob, the Banca d’Italia and IVASS. Its legal framework is defined, inter alia, by Ministerial Decree No 100 of 30 April 2021, which sets out admission criteria, operational limits and supervisory powers. From a practical standpoint, the sandbox is particu- larly relevant where innovation intersects with regu- lated activities or does not fit neatly within existing regulatory frameworks. This includes cases involving reserved services, such as investment or payment services, lending and insurance distribution, as well as new operational models, including DLT-based infra- structures, algorithmic governance systems and alter- native custody solutions. The sandbox operates on a temporary and conditional basis. Admission is granted following a case-by-case assessment, and participants are subject to specific safeguards and reporting obligations. The objective
336 CHAMBERS.COM
Powered by FlippingBook