ITALY Trends and Developments Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Patti Legal
Studio Patti Largo Augusto 3 20122 Milan Italy Tel: +39 02 365 89238 Email: segreteria@patti.legal Web: www.patti.legal
A Year of Structural Change Over the past twelve months, the Italian blockchain and crypto-asset landscape has undergone a pro- found transformation, driven primarily by the imple- mentation of the EU Markets in Crypto-Assets Regu- lation (MiCAR). The shift has been structural rather than incremental, marking a transition from a light- touch regime to a fully integrated financial regulatory framework. Prior to MiCAR, Italy had adopted a relatively flexible approach to anti-money laundering compliance. Cryp- to-asset service providers were not subject to authori- sation by Consob or the Bank of Italy; instead, they were required only to register with the OAM ( Organ- ismo Agenti e Mediatori ) based on limited disclosure requirements. This streamlined regime facilitated rapid market entry and led to the registration of more than 150 virtual asset service providers (VASPs). MiCAR has fundamentally altered this landscape. The introduction of a full authorisation regime, coupled with stringent organisational, prudential and conduct- of-business requirements, has significantly raised the regulatory threshold. As a result, many entities pre- viously registered with the OAM have opted not to pursue MiCAR authorisation. By the end of 2025, the number of operators remaining on the register had fallen to just over 30 (22 at the time of writing), many of which remain listed primarily because they have submitted applications in other EU jurisdictions.
From Registration to Supervision The transition from VASP to CASP represents a fun- damental redefinition of the Italian market. Under MiCAR, crypto-asset service providers must operate within a framework that mirrors traditional financial regulation, including: • robust governance and internal controls; • detailed organisational and ICT requirements; • capital and prudential safeguards; and • enhanced investor protection and transparency obligations. This is not merely a procedural evolution but a sub- stantive change in regulatory philosophy. Operators are no longer subject to a one-off registration require- ment but to ongoing supervision and continuous com- pliance. The Italian authorities have adopted a particularly rig- orous approach. The Bank of Italy has emphasised the need for genuine local substance, requiring decision- making functions and effective management to be located within the EU. Similarly, Consob has focused on conduct of business, transparency and investor protection, applying standards closely aligned with those of traditional securities markets. The transitional regime has allowed existing opera- tors to continue operating temporarily, but it has not softened the overall impact.
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