Bank of Italy outlines supervisory expectations for MiCAR crypto-asset service provider authorisations at Rome workshop

The Bank of Italy hosted a workshop in Rome on the implementation of the Markets in Crypto-Assets Regulation (MiCAR) in Italy, focused on the authorisation of crypto-asset service providers (CASPs). The session was used to share initial insights from the ongoing authorisation campaign and to set out supervisory expectations, while industry associations discussed practical challenges in preparing applications. Representatives from financial intermediary associations, academia, the Bank of Italy, the Financial Intelligence Unit and CONSOB highlighted issues including the complexity and compliance burden of the framework, particularly for smaller entities operating in Italy. Other topics included the tax treatment of crypto-assets and the interaction between the Second Payment Services Directive (PSD2) and MiCAR, where overlapping requirements could lead to duplicated compliance obligations for firms offering integrated services. Traditional financial intermediaries also noted growing interest in crypto-assets but emphasised caution given sector risks and the need for sufficient scale to justify direct engagement. Following the debate, the authorities confirmed they will continue engaging with market participants, including through bilateral consultations with firms intending to submit an application, and reiterated an open but rigorous approach centred on sound risk management and the principle of "same risks, same rules", including for smaller entities in light of financial market interconnections.