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Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#194
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Archived
Created
2025-04-12 06:55
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Live

Executive Summary

Retail cryptocurrency trading is permitted and regulated in Italy. The primary regulators are the Bank of Italy and CONSOB, with the OAM playing a role in VASP registration during the transition to MiCA. Key requirements include AML/KYC compliance and registration/licensing for VASPs/CASPs. Italy has implemented EU directives and regulations, including the Markets in Crypto-Assets (MiCA) Regulation, via Legislative Decree No. 129 of September 5, 2024, to create a comprehensive framework.

Key Pillars

The primary regulators are the Bank of Italy and CONSOB, responsible for supervision under MiCA. Core compliance requirements include AML/KYC/CFT, and registration with the OAM (transitionary) and licensing under MiCA are essential for VASPs and CASPs operating in Italy. The regulatory framework focuses on transparency, security, and preventing illicit financial activities.

Landmark Laws

  • EU's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114): Introduces a comprehensive, harmonized licensing regime for Crypto-Asset Service Providers (CASPs) across the EU.
  • Legislative Decree No. 129 of September 5, 2024: Formally adopted MiCA implementation measures in Italy.

Considerations

Cryptocurrencies are treated as virtual assets subject to AML/KYC regulations. The regulatory framework ensures cryptocurrency activities are conducted securely and transparently. The FATF Travel Rule, requiring the collection and transmission of originator and beneficiary information for crypto transactions, is also enforced in Italy.

Notes

Historically, the crypto market operated in a regulatory grey area, and authorities like the Bank of Italy and CONSOB issued warnings about risks. The OAM registration requirement came into effect in 2022. There is a transitional period for VASPs registered with the OAM by December 27, 2024, allowing them to continue operating under the existing OAM regime until June 30, 2025, provided they apply for a MiCA license by that date, with a final deadline of December 30, 2025, for approval/rejection.

Detailed Explanation

Retail trading of cryptocurrencies is legally permitted in Italy. The country's regulatory environment has evolved from a grey area to a structured framework due to AML concerns and the implementation of EU directives. While crypto wasn't explicitly illegal historically, authorities like the Bank of Italy and CONSOB issued risk warnings. A key regulatory shift was the implementation of EU AML Directives, leading to mandatory registration for VASPs with the Organismo Agenti e Mediatori (OAM) in 2022. The OAM registry, focused on AML/CFT, requires KYC procedures, transaction monitoring, and reporting. Foreign VASPs must establish a physical presence to serve Italian customers and register with the OAM. The EU's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114) is transforming the regulatory landscape, introducing a harmonized licensing regime for CASPs. Italy formally adopted MiCA implementation measures via Legislative Decree No. 129 of September 5, 2024. Supervisory responsibilities are divided between the Bank of Italy (prudential supervision, AML/CFT, ARTs/EMTs) and CONSOB (investor protection, market integrity, CASP authorization in consultation with the Bank of Italy, crypto-asset public offerings except ARTs/EMTs). MiCA provisions for stablecoins (ARTs/EMTs) took effect June 30, 2024, with main CASP rules effective December 30, 2024. A transition period allows VASPs registered with OAM by December 27, 2024, to operate under the OAM regime until June 30, 2025, if they apply for a MiCA license by that date, continuing until approval/rejection, but no later than December 30, 2025. Entities not applying by June 30, 2025, must cease operations. The FATF Travel Rule is also enforced.

Summary Points

Here's a bullet-point summary of the report, designed for clarity and quick comprehension:

Retail Cryptocurrency Trading Status in Italy (April 12, 2025)

I. General Status:

  • Allowed-Regulated: Retail trading of cryptocurrencies (buying, selling, holding) is legal in Italy.
  • The regulatory environment is evolving from a grey area to a structured framework.
  • Driven primarily by AML concerns and EU directives/regulations.

II. Key Regulatory Bodies and Their Roles:

  • Organismo Agenti e Mediatori (OAM):
    • Previously responsible for VASP registration and AML oversight.
    • Registry is being phased out by MiCA.
  • Bank of Italy:
    • Prudential supervision of CASPs.
    • Financial stability oversight.
    • AML/CFT supervision for CASPs.
    • Authorization/supervision of Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs).
  • Commissione Nazionale per le Società e la Borsa (CONSOB):
    • Investor protection.
    • Market integrity and transparency.
    • Authorization and supervision of CASPs (in consultation with the Bank of Italy).
    • Oversight of public offerings of crypto-assets (excluding ARTs and EMTs).

III. Important Legislation and Regulations:

  • EU AML Directives (4th and 5th): Led to mandatory VASP registration with the OAM.
  • Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114):
    • Introduces a harmonized licensing regime for Crypto-Asset Service Providers (CASPs) across the EU.
    • Replaces the OAM registry for many operational aspects beyond AML.
  • Legislative Decree No. 129 of September 5, 2024: Implements MiCA in Italy.

IV. Requirements for Compliance:

  • OAM Registration (Transitional):
    • VASPs operating before December 27, 2024, could register with the OAM.
    • Registration allowed continued operation until June 30, 2025.
  • MiCA Authorization:
    • CASPs must obtain authorization to operate legally.
    • Application deadline for OAM-registered VASPs: June 30, 2025.
    • If applied by deadline, can operate until application is approved/rejected, but no later than December 30, 2025.
  • AML/KYC Compliance:
    • Customer due diligence.
    • Transaction monitoring.
    • Reporting suspicious activities.
  • FATF Travel Rule: Collection and transmission of originator/beneficiary information for crypto transactions.

V. Notable Restrictions or Limitations:

  • Foreign VASPs: Must establish a physical presence (branch for EU, subsidiary for non-EU) to serve Italian customers.
  • OAM Transition: VASPs not applying for MiCA authorization by June 30, 2025, must cease operations.

VI. Recent Developments or Changes:

  • MiCA Implementation: Italy formally adopted MiCA implementation measures via Legislative Decree No. 129 of September 5, 2024.
  • MiCA Effective Dates:
    • Stablecoin (ARTs and EMTs) provisions applied from June 30, 2024.
    • Main CASP authorization and operation rules came into effect on December 30, 2024.
  • Transitional Period: VASPs registered with the OAM by December 27, 2024, can continue operating under the existing OAM regime until June 30, 2025, provided they apply for a MiCA license by that date.

Full Analysis Report

Report: Retail Cryptocurrency Trading Status in Italy

Date: April 12, 2025

Topic: Retail_Trading_Status

Description: Assessment of the legal permissibility for individual citizens and residents in Italy to buy, sell, and hold cryptocurrencies, including details on the regulatory environment (e.g., KYC/AML requirements, warnings).

1. Current Status: Allowed-Regulated

2. Narrative Explanation:

Retail trading of cryptocurrencies (buying, selling, holding) is legally permitted for individuals in Italy [6, 7]. The country has moved from a relatively unregulated environment towards a structured regulatory framework, primarily driven by Anti-Money Laundering (AML) concerns and the implementation of European Union directives and regulations.

Historically, while not explicitly illegal, the crypto market operated in a regulatory grey area [2]. Authorities like the Bank of Italy and CONSOB (Commissione Nazionale per le Società e la Borsa - the Italian securities regulator) issued warnings about the risks associated with crypto-assets but did not ban their use [2, 10, 13].

A significant step towards regulation occurred with decrees implementing EU AML Directives (specifically the 4th and 5th). This led to the establishment of a mandatory registration requirement for Virtual Asset Service Providers (VASPs), including exchanges and wallet providers, operating in Italy [7, 11, 14]. This registration, managed by the Organismo Agenti e Mediatori (OAM), came into effect in 2022 [11, 15, 26]. The OAM registry primarily serves AML/CFT (Counter-Financing of Terrorism) purposes, requiring registered entities to comply with KYC (Know Your Customer) procedures, transaction monitoring, and reporting obligations [3, 6, 10, 13]. Foreign VASPs wishing to serve Italian customers must establish a physical presence (a branch for EU entities, a subsidiary for non-EU entities) and register with the OAM [11, 14].

The regulatory landscape is currently undergoing a major transformation with the implementation of the EU's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114) [2, 3, 4, 5]. MiCA introduces a comprehensive, harmonized licensing regime for Crypto-Asset Service Providers (CASPs) across the EU, replacing previous national registration systems like Italy's OAM registry for many operational aspects beyond AML [3, 4]. Italy formally adopted implementation measures for MiCA via Legislative Decree No. 129 of September 5, 2024 [3, 4, 5, 16].

Under MiCA, supervisory responsibilities in Italy are divided between the Bank of Italy and CONSOB [2, 4, 5, 9, 16, 23]:
* Bank of Italy: Focuses on prudential supervision, financial stability, AML/CFT supervision for CASPs, and authorization/supervision of issuers of Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs) [4, 9, 16].
* CONSOB: Responsible for investor protection, market integrity, transparency, authorization and supervision of CASPs (in consultation with the Bank of Italy), and oversight of public offerings of crypto-assets other than ARTs and EMTs [2, 4, 5, 9, 16].

MiCA's provisions related to stablecoins (ARTs and EMTs) applied from June 30, 2024, while the main rules for CASP authorization and operation came into effect on December 30, 2024 [3, 12, 20]. Italy has implemented a transitional ("grandfathering") period: VASPs registered with the OAM by December 27, 2024, can continue operating under the existing OAM regime until June 30, 2025, provided they submit an application for a MiCA license (in Italy or another EU Member State) by that date. If they apply, they can continue operating until their application is approved or rejected, but no later than December 30, 2025 [3, 12, 16, 26]. Entities not applying by June 30, 2025, must cease operations [3, 16].

Therefore, while individuals are free to trade crypto, they are expected to use platforms that comply with Italian and EU regulations, including OAM registration (during the transition) and forthcoming MiCA authorization, along with associated AML/KYC requirements [7, 10]. The FATF Travel Rule, requiring the collection and transmission of originator and beneficiary information for crypto transactions, is also enforced in Italy [6].

3. Supporting Excerpts:

  • On Legality for Individuals: "Italian residents are legally permitted to own, buy, and sell virtual assets. The regulatory framework ensures cryptocurrency activities are conducted securely and transparently." [6] (Source: Notabene, Dec 2024) / "The good news is that cryptocurrencies are legal in Italy. The country is welcoming toward cryptocurrency enthusiasts, with a legal framework in place... no laws prohibit someone from buying, selling or holding cryptocurrencies in Italy." [7] (Source: Cointelegraph, Jan 2024)
  • On OAM Registration: "Since January 2023, Italy has been strengthening cryptocurrency exchange regulations by mandating that crypto companies register with the Organismo Agenti e Mediatori (OAM), fostering transparency through a dedicated registry, and ensuring compliance with Anti-Money Laundering measures." [7] (Source: Cointelegraph, Jan 2024) / "The new Decree... imposes on cryptocurrency and digital wallet service providers who operate or intend to operate in the Italian territory the compulsory enrollment in a special section of the register held by the 'Organismo per gli agenti e mediatori'... a now-mandatory requirement to operate in Italy." [11] (Source: CMS Law, Feb 2022)
  • On MiCA Implementation: "On 14 September 2024, Legislative Decree No. 129 came into force, bringing Italian regulations in line with MiCAR provisions. The measure grants to Consob and Bank of Italy supervisory and investigation powers..." [5] (Source: CMS Law, Oct 2024) / "The MiCA Decree introduces a comprehensive regulatory framework for crypto asset service providers (CASPs) operating in Italy, which will replace the existing rules on virtual asset service providers (VASPs)." [3] (Source: Greenberg Traurig LLP, Sep 2024)
  • On MiCA Transition: "As a result, after the final entry into force of MiCA (from 30 December 2024), all VASPs duly registered in the Italian OAM that register by 27 December 2024 may continue to operate for a period of six months – i.e., until 30 June 2025... In addition, the same parties, if they apply for authorisation by 30 June 2025 as a CASP in Italy or in another Member State, may continue to operate pending authorisation issuance or rejection, and in any case no later than 30 December 2025." [3] (Source: Greenberg Traurig LLP, Sep 2024) / "A number of jurisdictions have/intend to implement a shortened Transition Period: 12 months or until 30 December 2025 in Ireland and Italy..." [12] (Source: Aosphere, Feb 2025)
  • On Regulatory Authorities: "Cryptocurrency regulation in Italy is managed by: Organismo Agenti e Mediatori (OAM) for VASP registration and AML oversight. Commissione Nazionale per le Società e la Borsa (Consob) and the Bank of Italy for monitoring crypto-market integrity and investor protection [under MiCA]." [6] (Source: Notabene, Dec 2024) / "The MiCAR Italian Decree identifies CONSOB and the Bank of Italy as the competent supervisory authorities in Italy of crypto-assets issuers and crypto-asset service providers ('CASPs')..." [16] (Source: Hogan Lovells, Sep 2024)
  • On AML/KYC: "Legislative Decree No. 129/2024 mandates that VASPs register with the OAM and comply with AML and CTF requirements. These obligations include customer due diligence, transaction monitoring, and reporting suspicious activities." [6] (Source: Notabene, Dec 2024) / "Italy requires entities involved in cryptocurrencies to register with the Organismo degli Agenti e dei Mediatori (OAM)... for anti-money laundering (AML) purposes... The regulation also requires crypto exchanges and wallet providers to comply with Know Your Customer (KYC) requirements and report suspicious transactions..." [10] (Source: Prifinance Company)

4. Source Links:

  • [2] Wyden - MiCA in Italy: New Regulatory Certainty for Crypto Assets: https://wyden.io/insights/mica-in-italy-new-regulatory-certainty-for-crypto-assets (Note: While the URL points to Wyden, the content appears to be from Vertex AI Search based on the provided context. The original source might differ.)
  • [3] Greenberg Traurig LLP - New Italian Rules for Virtual Asset Service Providers: https://www.gtlaw.com/en/insights/2024/09/new-italian-rules-for-virtual-asset-service-providers
  • [4] Lexology - The Italian Law Implementing the EU MiCar Regulation: A "MiFIDisation" of Crypto-Assets?: https://www.lexology.com/library/detail.aspx?g=c1e0f6f0-0c2b-4a11-81a7-102c51f21c45
  • [5] CMS Law - Crypto-assets are now regulated in Italy: https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/italy (Note: The provided link might be a general guide; the specific article date is Oct 3, 2024)
  • [6] Notabene - Travel Rule Crypto in Italy by the OAM [2025]: https://notabene.id/crypto-travel-rule-compliance-italy
  • [7] Cointelegraph - An overview of the cryptocurrency regulations in Italy: https://cointelegraph.com/news/an-overview-of-the-cryptocurrency-regulations-in-italy
  • [10] Prifinance Company - Cryptocurrency exchange license in Italy: https://prifinance.com/en/licenses/crypto-license/europe/italy/
  • [11] CMS Law - Cryptocurrencies service providers: new regulatory requirements to operate in Italy: https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/italy/cryptocurrencies-service-providers-new-regulatory-requirements-to-operate-in-italy-following-the-set-up-of-the-special-section-of-the-oam-register
  • [12] Aosphere - Member State Implementation of MiCA: https://www.aosphere.com/aos/mica-tracker (Requires Subscription/Login for full details)
  • [13] Elliptic - Italy Country Guide: https://www.elliptic.co/resources/cryptocurrency-regulations-guide/italy
  • [14] Hogan Lovells - Italian VASP registration regime: https://www.hoganlovells.com/en/publications/italian-vasp-registration-regime
  • [15] Deacons (via Lexology) - Virtual asset service and e-wallet providers must register in Italy: https://www.lexology.com/library/detail.aspx?g=a08a1e7d-d25e-4e8f-8f3a-6e0a1e3e6c4d
  • [16] Hogan Lovells - Italian Legislative Decree implementing MiCAR: https://www.hoganlovells.com/en/publications/italian-legislative-decree-implementing-micar
  • [20] Mondaq - Crypto-Assets: MiCAR Regulation Arrives In Italy: https://www.mondaq.com/italy/fin-tech/1539208/crypto-assets-micar-regulation-arrives-in-italy
  • [23] CoinGeek - Italy to increase oversight of digital asset market: https://coingeek.com/italy-to-increase-oversight-of-digital-asset-market/
  • [26] Global Legal Insights - Fintech Laws and Regulations Italy 2024: https://www.globallegalinsights.com/practice-areas/fintech-laws-and-regulations/italy

End of Report

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