Italy Mandates Crypto Providers Secure MiCAR Authorization by December 30 or Cease Operations

Italy's financial regulator, Consob, has issued a directive to crypto service providers requiring them to obtain MiCAR authorization by December 30, 2025, or exit the market. This move is part of a broader initiative to regulate cryptocurrency services across the EU, aiming to provide a safer and more reliable environment for investors.

Key Takeaways

Deadline for Authorization: Crypto providers in Italy must secure MiCAR authorization by December 30, 2025, to continue operations.
Regulatory Changes: The transition impacts how Virtual Asset Service Providers (VASPs) operate and obtain authorizations as Crypto-Asset Service Providers (CASPs).
Investor Verification: Users should confirm their provider's compliance status to ensure the legitimacy of their services.
Consequences of Non-compliance: Providers failing to gain authorization must stop operations and return assets to customers by the deadline.

Italy

Italy’s Regulatory Push for Crypto Compliance

Recently, Italy’s financial watchdog, Consob, has mandated that all crypto service providers secure authorization under the European Union's new Markets in Crypto-Assets Regulation (MiCAR) by the approaching deadline of December 30, 2025. This move escalates the pressure on exchanges and brokers that cater to Italian users.

Consob is urging both investors and operators to remain vigilant as the transition period for the MiCAR regulations is nearing its conclusion. These new regulations are set to transform how virtual asset service providers operate throughout the EU, including their marketing of trading, custody, and various other services to retail clients.

Under the current framework in Italy, entities acting as Virtual Asset Service Providers (VASPs) may continue operating until December 30, 2025, provided they are registered with the OAM, Italy’s national registry for agents and brokers. However, they must demonstrate substantial progress towards becoming compliant as Crypto-Asset Service Providers (CASPs) to maintain their operations legally.

Understanding the Changes to Crypto Regulations

VASPs that submit an authorization application by the December 30 deadline, whether in Italy or another EU member state, will be allowed to continue serving their clientele while their applications are processed. This temporary allowance will end once the application is either approved or denied, with a final deadline set for June 30, 2026.

Currently, Italian regulations only necessitate that VASPs register with the OAM. However, under MiCAR, CASPs will need prior approval from their respective supervisory authority followed by ongoing supervision. This regulatory shift aligns Italy with a broader EU effort to implement stricter oversight following several global incidents involving exchange failures and collapses of digital tokens.

To facilitate a smooth transition, Consob has issued a comprehensive notice that echoes guidelines released by the European Securities and Markets Authority on the same day. This document outlines necessary actions for retail users as the deadline approaches and details what operators must establish if they plan to acquire a license or cease operations.

Important Warnings for Investors

For investors, the regulator has pointed out that some VASPs currently in operation may no longer be eligible to conduct business after December 30. Clients are encouraged to confirm that they have received clear communication from their provider outlining how they plan to comply with the upcoming regulations. If providers fail to notify clients, users should seek clarification regarding their compliance strategies.

Furthermore, Consob advised users to verify the legitimacy of a firm's operations in Italy post-deadline, either by consulting the OAM list of VASPs or the ESMA register of authorized CASPs. Any provider lacking legitimacy will not be permitted to offer crypto-asset services, and customers may request the return of their funds or tokens.

On the provider’s end, Consob reminded firms that they had already communicated relevant guidance through various channels, including meetings and public announcements. Notably, a notice in September 2024 provided initial instructions to firms, followed by another in July 2025, which extended the national transition period to June 30, 2026. A specific warning was distributed on October 31, 2025, targeting VASPs listed on the OAM that had yet to receive MiCAR authorization.

Providers opting against pursuing authorization as CASPs must cease their operations in Italy by December 30, 2025, and conclude existing contracts. They are required to return all crypto-assets and related funds to clients based on their instructions and terminate all services, including custody and administration.

VASPs remaining listed on the OAM must clearly communicate their operational plans on their websites and directly inform clients about their intentions, whether they are applying for a MiCAR license or planning an orderly exit from the market.