Italy is moving decisively to implement the EU's Markets in Crypto-Assets (MiCA) regulation, setting a firm deadline for crypto platforms operating within its borders to comply. The Italian financial market regulator, CONSOB, has mandated that Virtual Asset Service Providers (VASPs) must obtain authorization as MiCA-compliant Crypto Asset Service Providers (CASPs) by December 30, 2025, or cease operations in the country. This move signals a significant shift towards regulatory clarity and investor protection in Italy's rapidly evolving digital asset landscape.

MiCA, a comprehensive regulatory framework established by the European Union, aims to standardize the rules for crypto-assets across all member states. Italy's adoption of MiCA reflects its commitment to providing a consistent and transparent regulatory environment for crypto businesses. This includes aligning its national framework with the European Securities and Markets Authority's (ESMA) crypto classification guidelines and introducing new licensing and tax rules for CASPs and VASPs.

Under the Italian framework, VASPs currently registered with the Organismo Agenti e Mediatori (OAM), the national agents and brokers registry, can continue operating until December 30, 2025. However, to continue serving Italian clients beyond this date, these firms must seek authorization as MiCA-compliant CASPs.

VASPs that submit authorization applications by the deadline, either in Italy or another EU member state, will be permitted to continue serving customers during the review process. However, this extension is not indefinite; operations must cease upon approval or rejection of the application, or by June 30, 2026, whichever comes first.

For VASPs that do not intend to apply for MiCA authorization, the requirements are clear: they must cease their Italian operations by December 30, 2025. This includes terminating existing contracts, returning all crypto-assets and funds to customers, and publishing clear notices on their websites and directly to clients outlining their exit or licensing plans.

Italy's implementation of MiCA also introduces a segregation regime for crypto-assets and funds held by CASPs. These assets are legally separated from the CASP's own assets and those of other customers, protecting them from enforcement actions by the CASP's creditors.

Providing crypto-asset services without MiCA authorization, or breaching MiCA requirements, carries significant penalties under the Italian framework. These include imprisonment for a period between six months and four years, and fines ranging from EUR 2,066.00 to EUR 10,329.00.

The legislative journey in Italy during 2025 has been marked by key developments, including Law Decree 95/2025, which extended the VASP registration deadline to December 30, 2025. This extension provided existing operators with additional time to comply with the new requirements.

With a significant portion of the Italian population expected to hold digital assets, Italy is transitioning from a crypto-curious market to a more mature and regulated environment. CONSOB's adoption of ESMA's crypto classification guidelines further demonstrates Italy's commitment to aligning with EU-wide regulations, fostering regulatory clarity for digital assets. The ESMA guidelines provide a framework for classifying crypto-assets, distinguishing between those that function as traditional financial instruments and those that do not.

Italy's proactive approach to MiCA compliance underscores its ambition to be a leader in Europe's digital asset landscape, balancing innovation with robust investor protection. The December 30, 2025, deadline represents a critical milestone for crypto platforms operating in Italy, compelling them to adapt to the new regulatory reality or face the consequences of non-compliance.