The Bank of Italy is preparing to implement the European Union’s (EU) Markets in Crypto-Assets (MiCA) regulation. Notably, this significant move aims to preserve the smooth functioning of the payment system, according to recent reports. Besides, the upcoming guidelines by the bank will clarify how the new rules will apply, signaling a transformative phase for Italy’s crypto market.
Bank Of Italy To Implement MiCA
In the coming days, the Bank of Italy will release guidelines for the EU’s MiCA regulation. Governor Fabio Panetta, in a speech to the Italian Banking Association (ABI), emphasized the importance of maintaining a stable payment system.
According to a recent report by Reuters, the MiCA regulation identifies electronic money tokens (EMTs) and asset-reference tokens (ARTs) as viable payment methods. For context, Panetta highlighted that EMTs are linked to a single official currency, while ARTs depend on one or more underlying assets.
Meanwhile, according to Panetta, only EMTs can fully preserve public trust as a means of payment. These tokens can be issued by banks or electronic money institutions. This approach aims to ensure the reliability and stability of the payment system amid the growing popularity of cryptocurrency assets.
Besides, this strategic move by the Bank of Italy underscores its commitment to integrating crypto assets into the traditional financial system. By implementing MiCA, Italy aims to create a regulated and secure environment for crypto transactions. The guidelines will provide clarity and direction for market participants, fostering confidence in the evolving digital asset landscape.
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Broader Impact Of The Regulation
The MiCA regulation is set to revolutionize the European crypto market. As CoinGape Media reported earlier, Patrick Hansen, Director of Strategy and Policy at Circle, noted that MiCA will localize, institutionalize, and consolidate the EU crypto
landscape. He believes that MiCA will professionalize the market, compelling participants to either comply or exit.
Meanwhile, this regulatory framework is expected to bring much-needed clarity and structure to the crypto market. By establishing clear rules and guidelines, MiCA aims to create a more secure and transparent environment for crypto operations.
In addition, Circle’s recent announcement that its stablecoins, USDC and EURC, are now available under EU regulations, marks a significant milestone. This development makes Circle the first stablecoin company to become MiCA compliant.
Meanwhile, MiCA’s introduction is anticipated to have far-reaching implications for the crypto industry. It will likely lead to increased institutional participation and greater market stability. By fostering a regulated environment, MiCA aims to protect investors and ensure the long-term sustainability of the crypto market.
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