ITALY Trends and Developments Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Patti Legal
111 MiCAR in relation to an offering carried out via online channels, including a dedicated website and Telegram channel. The authority found that the offer had been conducted in breach of MiCAR require- ments, notably because it was not made by a legal entity, was not accompanied by a compliant white paper and had not been duly notified or published in accordance with the Regulation. More broadly, the Italian approach reflects a clear regulatory philosophy: the development of the crypto- asset market must take place within a well-defined legal perimeter, and compliance is not regarded as a secondary or formal requirement, but as a central ele- ment of market integrity. The transition to MiCAR has reinforced this principle by embedding crypto-asset activities within a framework closely aligned with tra- ditional financial regulation, where governance, trans- parency and investor protection are non-negotiable. For market participants, this has practical implica- tions. Business models that rely on aggressive mar- keting, regulatory arbitrage or informal operational structures are increasingly unlikely to succeed in the Italian environment. By contrast, operators that invest in robust compliance frameworks – covering areas such as internal controls, client disclosures, AML procedures and technological resilience – are better positioned to operate sustainably. The overall message is therefore unequivocal: MiC- AR in Italy is not merely a formal framework but an actively enforced regime. Retail-facing activities, in particular, are subject to close scrutiny, and there is limited tolerance for non-compliance. In this context, adherence to regulatory requirements is not simply a legal obligation, but a key condition for long-term market access and credibility. DeFi and the Italian Talent Layer Alongside institutional and regulatory developments, Italy is experiencing a particularly dynamic phase in the field of decentralised finance (DeFi), driven primar- ily by technological experimentation rather than formal market structures. Beyond the regulated perimeter, a growing number of highly skilled Italian developers are actively contributing to leading global DeFi protocols,
participating in projects that are likely to reshape key aspects of financial markets over the coming years. This layer of innovation is characterised by strong technical expertise in areas such as smart contract development, protocol design, security auditing and cryptographic engineering. Italian teams are frequent- ly involved in international, open-source ecosystems, often operating without a formal domestic corporate presence but playing a meaningful role in the evolution of decentralised infrastructures. As a result, while Italy may not yet be a preferred jurisdiction for the legal structuring of DeFi projects, it is increasingly recog- nised as a source of high-quality technical talent. This trend is also reflected in the emergence of indus- try events and community-driven initiatives. Among these, “Ethereum Milano” has gained particular vis- ibility as a recurring conference dedicated to the Ethereum ecosystem and the broader Web3 space. The event brings together developers, researchers, entrepreneurs and investors, offering a platform for knowledge sharing, technical discussion and net- working. Its growing scale and international partici- pation highlight the increasing relevance of Italy within the global blockchain developer community. From a regulatory perspective, DeFi remains largely outside the direct scope of MiCAR where activities are genuinely decentralised and not carried out by identifiable intermediaries. However, the boundary between decentralised and intermediary-driven mod- els remains fluid, and Italian authorities are likely to monitor developments closely. Overall, the Italian DeFi landscape presents an inter- esting contrast: while regulatory and institutional developments are proceeding cautiously, technologi- cal innovation continues to evolve at a rapid pace, positioning Italy as a contributor to the global devel- opment of decentralised finance rather than as a pri- mary jurisdiction for its legal structuring. Taxation of Crypto-Assets The Italian tax framework applicable to crypto-assets has continued to evolve, reaching a more structured – yet still partially uncertain – configuration as of 2026. The most significant development is the full entry into
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