Is Crypto Legal in Italy?

Crypto-assets are legal in Italy, and the regulatory framework is now fully operational under the EU's Markets in Crypto-Assets Regulation (MiCAR), with Regulation (EU) 2023/1114 fully applicable since 30 December 2024 and rules on EMTs and ARTs effective since 30 June 2024 Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy (Banca d'Italia) and the Italian Companies and Stock Exchange Commission (CONSOB) are the designated competent authorities under MiCAR, with the Bank of Italy holding prudential supervision powers over EMT and ART issuers and CASPs, as well as serving as the competent authority for AML supervision of crypto-asset service providers Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

As of 30 June 2026, Italy has authorized 8 CASPs (CheckSig S.r.l., Conio S.r.l., CryptoSmart S.p.A., Hercle S.r.l., Hodlie S.r.l., Olliv Italia S.r.l., Riv Digital S.r.l., and Young Platform S.p.A.), with one banking intermediary, Banca Sella S.p.A., having submitted a notification to provide crypto-asset services Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

The practical reality is that crypto-asset service providers without MiCAR authorization must cease activities in Italy as of 1 July 2026, except for orderly closure of existing client relationships, making authorization a mandatory requirement for continued operation Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

All operators authorized in Italy are entered in the Register of crypto-asset service providers maintained by ESMA and may offer services across all EU countries under the "European passport" regime Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

The Bank of Italy (Banca d'Italia) is the Italian Republic's central bank and pursues aims of general interest in the monetary and financial sector, operating within the Eurosystem alongside the European Central Bank Banca d’Italia - Legal framework

The Italian Companies and Stock Exchange Commission (CONSOB) is designated alongside the Bank of Italy as a competent authority under MiCAR Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy has been granted prudential supervision powers vis-à-vis both EMT and ART issuers, including with regard to market access, and CASPs Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy is designated as the competent authority for AML supervision of crypto-asset service providers, without prejudice to its oversight powers on the smooth functioning of the payment system Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy supervises the transparency, fair conduct, and protection of EMT holders in relation to their issuance, limited to EMT issuers Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Financial Intelligence Unit is listed as a related site of the Bank of Italy, indicating its role in the AML framework Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR) is the primary legal framework, introducing a harmonized framework in the European Union for the issuance and offering to the public of crypto-assets and the provision of services involving crypto-assets Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Regulation (EU) 2023/1113, also known as the Transfer of Funds Regulation recast (TFR recast), supplements MiCAR by extending to crypto-asset service providers all the anti-money laundering requirements that apply to financial intermediaries Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Draft legislative decrees laying down provisions for adapting the national regulatory framework to MiCAR and the TFR recast were submitted for public consultation on 20 February 2024 Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Article 146(2) of the Italian Consolidated Law on Banking (TUB) grants the Bank of Italy powers to safeguard the functioning of the payment system, its reliability and efficiency, and the protection of payment service users Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

MiCAR covers three types of crypto-assets: electronic money tokens (EMTs), asset-referenced tokens (ARTs), and crypto-assets other than EMTs and ARTs Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

MiCAR is an EU Regulation, making Italy part of a harmonized European framework for crypto-assets, with the European Securities and Markets Authority (ESMA) maintaining the Register of crypto-asset service providers Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

The Bank of Italy and Consob carry out supervisory activities in coordination with ESMA and other competent authorities to ensure the uniform application of MiCAR Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

ESMA has issued guidance related to non-MiCA-compliant ARTs and EMTs, which the Bank of Italy and Consob have communicated to Italian market participants Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

The issuance, offering to the public, and admission to trading of ARTs or EMTs, as well as the provision of crypto-asset services, are reserved to categories of entities expressly authorized under MiCAR Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Across the European Union, the provision of crypto-asset services to European clients is reserved exclusively to entities authorized as CASPs under MiCAR, as well as to already supervised intermediaries that have notified their intention to provide crypto-asset services Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

Draft legislative decrees designate the Bank of Italy and Consob as competent authorities under MiCAR, with the Bank of Italy holding prudential supervision powers over both EMT and ART issuers and CASPs Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

ESMA's guidance addresses CASPs licensed under Article 59 of MiCAR, as well as virtual asset service providers (VASPs) operating under relevant national regulations Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

CASPs operating a crypto-asset trading platform may no longer make crypto-assets that qualify as ARTs or EMTs available for trading if their issuers are not licensed in accordance with Titles III and IV of MiCAR Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

CASPs providing services that amount to an offer to the public or to an application for admission to trading—including receiving and transmitting orders, order execution on behalf of clients, and exchange of crypto-assets for funds or other crypto-assets—cannot provide these services when they allow for the purchase of ARTs and EMTs that are not compliant with MiCAR Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

The Bank of Italy has declared it is open to informal discussions to guide entities interested in launching initiatives in the crypto-asset sector, to be followed by the publication of a technical communication inviting crypto-asset market players to contact competent bodies before formally submitting notifications and authorization applications Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

MiCAR provisions became fully applicable from 30 December 2024, while rules on the issuance, offering to the public, and admission to trading of EMTs and ARTs became effective as of 30 June 2024 Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The transitional period for VASPs operating under national regimes came to an end as of 1 July 2026 Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

Consob, in close coordination with the Bank of Italy, has authorized 8 CASPs: CheckSig S.r.l., Conio S.r.l., CryptoSmart S.p.A., Hercle S.r.l., Hodlie S.r.l., Olliv Italia S.r.l., Riv Digital S.r.l., and Young Platform S.p.A. Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

One banking intermediary, Banca Sella S.p.A., has submitted a notification to the Bank of Italy for the provision of crypto-asset services Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

Entities interested in carrying out MiCAR-governed activities must fully comply with anti-money laundering and counter-terrorist financing provisions, including by ensuring the adequacy of their organizational and control structures Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Entities must assess in advance the potential effects of their initiatives and projects on the smooth functioning of the payment system Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Entities must take into account the specific characteristics of different types of crypto-assets and enabling technologies to define sustainable business models and identify and mitigate specific financial and operational risks Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Regulation (EU) 2023/1113, the Transfer of Funds Regulation recast (TFR recast), has extended to crypto-asset service providers all the anti-money laundering requirements that apply to financial intermediaries Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy is the competent authority for the AML supervision of crypto-asset service providers in Italy Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Entities interested in carrying out new activities under MiCAR must fully comply with anti-money laundering and counter-terrorist financing provisions, including by ensuring the adequacy of their organizational and control structures Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Operators that have not obtained CASP authorization must limit themselves to activities necessary for the orderly closure of existing relationships with clients, complying with conduct rules, anti-money laundering, and countering the financing of terrorism obligations Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

ESMA has requested that operators without authorization prepare orderly wind-down plans to ensure the transfer of clients' assets to authorized operators or self-hosted wallets, without causing financial harm to clients Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

CASPs were required to comply with ESMA's requirements regarding non-MiCA-compliant ARTs and EMTs by the end of January 2025, including ceasing to make such assets available for trading and ceasing to provide services that allow for the purchase of such assets Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

CASPs were permitted to continue offering services related to clients' positions in non-compliant crypto-assets only for the purpose of liquidation until the end of the first quarter of 2025 Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

As of 1 July 2026, operators that have not obtained authorization as CASPs in at least one EU country must cease their activities, limiting themselves to activities necessary for the orderly closure of existing relationships with clients Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

Any provision of crypto-asset services without authorization would be in breach of European Union rules Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

No tax guidance has been issued for virtual assets in the provided sources; the available materials focus exclusively on regulatory, licensing, and AML requirements under MiCAR and the TFR recast Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy highlights the unsuitability of crypto-assets other than EMTs and ARTs—especially unbacked ones—to perform a payment function, warning users of the different risk profiles associated with various categories of crypto-assets Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The Bank of Italy urges vigilance regarding ARTs being offered to customers for payment purposes, as these instruments are susceptible to potential fluctuations in their value and lack the fiduciary element based on their redeemability at par value Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Investors face risks from unauthorized entities operating under the same brand as authorized providers, since MiCAR protections apply only where the service provider is authorized in the EU and not where services are provided by other entities within a group, including non-EU entities Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

The Bank of Italy reserves the right to exercise powers under Article 146(2) of the Italian Consolidated Law on Banking (TUB) to safeguard the functioning of the payment system, its reliability and efficiency, and the protection of payment service users Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The high degree of interconnectedness between crypto-asset market players must be considered in identifying and mitigating financial and operational risks Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

The national implementing legislation was still in draft form as of the Bank of Italy's Communication dated 22 July 2024, with draft legislative decrees submitted for public consultation on 20 February 2024, creating a period of regulatory transition Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Entities must ensure that potential EMT holders are fully aware of both the potential risks associated with the technology used and the rights and obligations attached to the specific token Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Banca d’Italia - Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR). Communication by the Bank of Italy

Banca d’Italia - Joint Banca d'Italia/Consob communication on requirements for crypto-asset providers

Transitional period under the MiCA Regulation on crypto-assets ends: 9 entities authorised in Italy - Joint press release by Consob and the Bank of Italy - CONSOB AND ITS ACTIVITIES - CONSOB

Bank of Italy - Supervisory guidance

Banca d’Italia - Legal framework

Licensing regime for CASPs: Any entity providing crypto-asset services (custody, trading, exchange, portfolio management, advice, transfer services) to EU clients must obtain a CASP license from the competent authority of its home Member State.

EU passporting rights: A MiCA license is valid across all EU/EEA Member States, including Italy, without separate national authorizations.

Interaction with TUF/CONSOB: For crypto-assets that qualify as "financial instruments" under MiFID II (e.g., tokens representing shares, bonds, or derivatives), MiCA does not apply. These assets remain subject to TUF, CONSOB authorization, and existing EU securities legislation. This creates a dual-track regime whereby the regulatory classification of the token determines the applicable framework.

Italian competent authority: CONSOB and Banca d'Italia are expected to be designated as the competent authorities for MiCA supervision in Italy, with CONSOB handling transparency and market conduct, and Banca d'Italia overseeing prudential matters and payment-related crypto services.

Ensuring transparency and correct behavior by financial market participants;

Overseeing disclosure of complete and accurate information to the investing public by listed companies;

Verifying accuracy of facts represented in prospectuses related to offerings of transferable securities;

Conducting investigations into potential infringements of insider dealing and market manipulation law — directly relevant to digital asset trading and securities;

Cooperating with other domestic and international authorities appointed to organize and operate financial markets Activities - CONSOB AND ITS ACTIVITIES - CONSOB.

Ensuring monetary and financial stability;

Anti-money laundering supervision and regulation;

Customer protection and financial education.

Italy's AML/CTF system was rated largely compliant, with the FATF acknowledging the legal framework's coverage of VASPs following the 2017 amendments.

The evaluation noted gaps in VASP supervision, including low levels of proactive supervision, incomplete registration data at OAM, and limited enforcement actions against unregistered entities.

The FATF placed Italy under enhanced follow-up for certain Recommendations, including those relating to supervision of non-financial sectors and transparency of beneficial ownership.

Italy was encouraged to intensify risk-based supervision of VASPs and pursue enforcement against unauthorized virtual asset service providers.

CONSOB/Banca d'Italia joint authorization: CONSOB reviews the application, while Banca d'Italia assesses prudential requirements.

Capital requirements: Initial capital of €730,000 (Class 2 investment firm) or €125,000 (Class 3 investment firm) depending on the services offered (Article 15 of TUF).

Scope: Investment services covered include execution of orders, dealing on own account, portfolio management, investment advice, underwriting, and operation of multilateral trading facilities.

Timeline: Authorization process typically takes 6–12 months.

Registration: Firms must be registered with CONSOB's register of authorized investment firms.

Payment Institution (PI) license: Governed by Legislative Decree No. 11/2010 (PSD2 transposition), administered by Banca d'Italia.

Electronic Money Institution (EMI) license: For issuing e-money tokens or stablecoins, governed by Legislative Decree No. 36/2010.

Capital requirements: €125,000–€350,000 depending on the specific payment services provided.

Registration: Registration in Banca d'Italia's payment institution register, with passporting rights across the EU/EEA.

Register with the Organismo Agenti e Mediatori (OAM) — the Italian AML registry for virtual currency and digital wallet service providers.

Appoint a legal representative in Italy (for non-EU entities).

Comply with AML obligations under Legislative Decree No. 231/2007, including customer due diligence, suspicious transaction reporting to the UIF (Financial Intelligence Unit), and ongoing monitoring.

Authorization: Required for MiCA CASPs, TUF investment firms, PIs, and EMIs. Involves substantive prudential review, capital requirements, governance requirements, and ongoing supervision.

Registration: Required for OAM AML registration and for certain VASP activities not requiring full authorization. Less substantive, but mandatory for lawful operations.

Failure to obtain the required authorization constitutes a criminal offense under TUF and MiCA, with penalties including fines and imprisonment.

Banca d'Italia has explicit statutory responsibility for anti-money laundering supervision and regulation in Italy, extending to all financial intermediaries including entities dealing in digital assets Banca d'Italia - Banca d'Italia Legislation.

Under Legislative Decree No. 231/2007 (as amended), VASPs must implement:

Customer due diligence (CDD) measures, including enhanced due diligence (EDD) for high-risk customers;

Suspicious transaction reporting (STR) to the UIF (Unità di Informazione Finanziaria);

Record-keeping obligations for five years;

Internal controls and staff training.

OAM Registration: All VASPs must register with the Organismo Agenti e Mediatori (OAM). The registration process includes verification of integrity and professional requirements of the legal representative and beneficial owners (Articles 17-bis through 17-decies of Legislative Decree 141/2010).

UIF Reporting: VASPs must file STRs with the UIF within 30 days of detecting suspicious activity. Threshold-based reporting may also apply for transfers exceeding €5,000.

CONSOB AML oversight: CONSOB also monitors intermediaries' conduct with respect to AML/KYC compliance as part of its transparency and market conduct mandate Consob - CONSOB AND ITS ACTIVITIES - CONSOB.

MiCA AML requirements: MiCA requires all CASPs to comply with EU AML obligations, including the EU Transfer of Funds Regulation (Regulation (EU) 2023/1113), which mandates that crypto-asset transfers be accompanied by information on the originator and beneficiary (the "travel rule").

Consob - CONSOB AND ITS ACTIVITIES - CONSOB

Legislative Decree no. 58 of 24 February 1998 page 1

New Consob website - CONSOB AND ITS ACTIVITIES - CONSOB

Bank of Italy - Bank of Italy Legislation

Activities - CONSOB AND ITS ACTIVITIES - CONSOB

Banca d'Italia - Legal framework

Listed Companies - CONSOB AND ITS ACTIVITIES - CONSOB

Banca d'Italia - Securities settlement systems