ITALY Trends and Developments Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Patti Legal
ity. Instead, it has prioritised alignment with traditional financial regulatory principles, emphasising govern- ance, transparency and investor protection. This approach has had immediate consequences. On the one hand, it has limited the number of operators seeking authorisation in Italy and contributed to a shift towards cross-border service provision through EU passporting. On the other, it has strengthened the credibility of the market and reduced the legal uncer- tainty that historically characterised the sector. At the same time, Italy is developing distinctive strengths in areas that are likely to define the next phase of blockchain adoption. In particular, the com- bination of MiCAR, the FinTech Decree and Euro- system initiatives positions the country as a relevant jurisdiction for regulated tokenisation, institutional use cases and financial infrastructure innovation. A notable feature of the Italian landscape is the coex- istence of two parallel dynamics. On the one hand, a highly structured and cautious regulatory environ- ment shapes the development of market-facing activi- ties. On the other, a vibrant technological ecosystem – particularly in DeFi and open-source development – continues to evolve at pace, often operating beyond formal jurisdictional boundaries.
Importantly, however, this same regulatory rigour may represent a strategic advantage for certain categories of operators. Italy can constitute an ideal jurisdiction for serious, well-structured projects that are willing to engage in continuous and transparent dialogue with supervisory authorities. For such actors, the availabil- ity of institutional interfaces – combined with a clear, albeit demanding, regulatory framework – offers the opportunity to develop compliant business models in close interaction with regulators, thereby reducing long-term legal and operational risk. For businesses and investors, the key takeaway is therefore nuanced. Italy may not offer the fastest route to market under MiCAR, but it provides a framework in which long-term, compliant and institutionally inte- grated projects can be developed with a high degree of legal certainty.
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