Italy Sets Firm MiCA Deadline As Crypto Firms Face Licensing Pressure

Italy sets a clear MiCA deadline and urges crypto firms to secure licenses before the 2025 cutoff.

Consob warns users to check provider status and demand clear plans for MiCA compliance before the deadline.

Italy reviews rising crypto risks as regulators push for stronger rules and tighter oversight across the sector.

Italy’s financial regulator has issued a warning as the MiCA compliance deadline draws closer. Crypto firms that operate without full approval must act before December 30, 2025. The guidance places pressure on providers that still rely on temporary permissions. Authorities want firms to complete the required steps or prepare to suspend operations.

Licensing Required for Continued Operations

Crypto companies registered in Italy can still offer services under MiCA’s transitional rules. Providers must apply for a CASP license in Italy or in another EU state to operate after the deadline. This requirement applies to all firms that plan to maintain access to the Italian market. Firms that submit their applications on time can keep serving customers while regulators review their files. This temporary period cannot extend beyond June 30, 2026.

Companies that fail to apply must halt all activities by December 30, 2025. They must also close contracts and return customer assets before exiting the market. Authorities released these instructions to ensure a clear transition as the new European rules take effect.

Guidance Issued for Firms and Retail Users

Consob also published a detailed set of guidelines to help firms navigate the shift. The instructions follow work completed by the European Securities and Markets Authority. The guidance explains required steps for operators and expectations for retail users

It also highlights the need for customers to verify a provider’s registration status before the deadline. Officials recommend checking the OAM VASP list or the ESMA CASP register. Users can request their assets if a firm lacks authorization after the cutoff.

Italy Examines Growing Crypto Risks

Italy’s Committee for Macroprudential Policies met in Rome on December 4 to assess rising risks linked to crypto-assets. The meeting involved leaders from financial and insurance authorities. Members noted that links between crypto-assets and traditional finance continue to expand. They said uneven global rules could expose banks, users, and markets to stress during periods of volatility.

The Ministry of Economy and Finance has also launched a review of protections for retail users. The review covers both direct and indirect exposure to crypto-assets. Italy aims to strengthen safeguards as the market grows. The committee also called for stronger oversight as firms adjust to MiCA requirements.

EU Prepares Broader Market Reforms

The European Commission presented new plans on Thursday to strengthen EU capital markets. The proposals aim to simplify cross-border activity and expand ESMA’s powers. Officials want stronger integration as the EU seeks to match progress seen in the United States and China.