The Bank of Italy, ahead of the MiCA law, is giving new guidelines for crypto regulations as it recognizes digital currencies as means of payment.
To establish a comprehensive regulatory framework for the digital asset sector within the European Union, the Bank of Italy is preparing to introduce regional guidelines that are consistent with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
In his address to the Italian Banking Association (ABI) on Tuesday, Governor Fabio Panetta disclosed that the Italian central bank would disclose these guidelines in the forthcoming days, as per a report by Reuters.
Preservation of the Integrity of the Payment System
The rules will concentrate on implementing the upcoming EU’s groundbreaking crypto regulatory framework on digital assets while ensuring the proper operation of the country’s payment system.
Under the new regulatory framework, Panetta underscored the significance of maintaining the reliability and trustworthiness of payment systems. According to him, the guidelines will guarantee a seamless transition for the Italian crypto market by providing clarity and direction on implementing MiCA’s provisions.
The forthcoming MiCA law acknowledges Electronic Money Tokens (EMTs) and Asset-reference Tokens (ARTs) as viable payment methods. However, the instruments must satisfy specific criteria before being utilized for payments.
Only EMTs are permitted to be utilized for payment purposes
The bank also discovered that the only instruments used for payments while preserving the country’s payment system are EMTs through its investigation. Both banks and digital asset service providers (VASPs) issue these offerings.
Panetta stated, “Our evaluation is that the sole instruments capable of serving as payment methods while simultaneously ensuring the public’s trust are electronic money tokens (EMTs), which electronic money institutions or banks can issue.”
The guidelines scheduled to be published shortly will serve as a guide for issuing EMTs and their providers to preserve public trust in Italy.
Readiness of the Industry for MiCA
Many companies are enhancing their product offerings to ensure compliance with the MiCA regulation, which is expected to be implemented by the end of July. The crypto market is still anticipating its implementation.
Binance, a cryptocurrency exchange, recently instructed its European users to prepare for the forthcoming regulations. The exchange intends to adhere to MiCA to maintain its regional services.
The exchange aims to “smoothly transition users from Unauthorized Stablecoins to Regulated Stablecoins as more Regulated Stablecoins become available in the market” under MiCA objectives.
Although Binance is still in the process of aligning its product offerings with MiCA, Circle, a stablecoin issuer, has obtained an operational license through its France unit to provide its services as an EMT by the MiCA rule.
The company is the first to obtain such authorization in the crypto industry. According to Circle, its two stablecoins, EURC and USDC, are permissible for use within the French frontier.