Italy -- Licensing Requirements Regulatory Overview

Italy's cryptocurrency/virtual asset regulation transitioned from a registration regime to a full licensing regime under MiCA (Regulation (EU) 2023/1114) and national transposition via Legislative Decree No. 129/2024 (effective September 2024), with full enforcement by June 30, 2025. Existing VASPs registered with OAM must obtain a Crypto-Asset Service Provider (CASP) license by December 30, 2025, or cease operations, facing fines up to €10 million or 15% of turnover.[1][3][7][8]

Required Licenses for Key Services

All providers of crypto services—including exchanges, custody, and related activities like trading platforms, token issuance, consultancy, intermediation, or public offerings—require a CASP license under MiCA. Payment processors handling crypto are similarly covered if involving custody, exchange, or transfers.[1][3][4][5]

Regulatory references:

• MiCA Regulation (EU) 2023/1114: https://www.boccadutri.com/micar-european-regulation-on-crypto-assets/ [1]
• Legislative Decree No. 129/2024: https://www.lightspark.com/knowledge/is-crypto-legal-in-italy [3]; https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/italy [8]
• Decree No. 218/2024 (effective Jan 1, 2025): https://www.binance.com/en/square/post/33345454531865 [7]

Registration vs. Licensing Regime

• Pre-MiCA (until ~June 2025): Registration-only with OAM for VASPs (exchanges, custody); no full license needed but mandatory AML/KYC compliance. Investors urged to use registered firms.[2][6]
• Post-MiCA (from June 30, 2025): Licensing regime via CASP authorization; single EU passporting allows operation across member states without per-country re-licensing. Transitional grace until Dec 30, 2025, for existing operators.[1][3][4][5][7][8]

Key Requirements

• Capital: €50,000–€150,000 minimum, scaled by services/risks.[4]
• AML/KYC: Strict compliance mandatory (Travel Rule, transaction monitoring, suspicious activity reporting); aligns with AMLD5 and GDPR for data protection.[2][3][6]
• Local Presence/Governance: Transparent ownership; board with finance/compliance experience; risk management systems; independent compliance/audit functions. No explicit branch required due to passporting, but Italian authorities oversee.[3][5]
• Other: Asset segregation, consumer protection, market abuse prevention.[3][5]

Application Process

1. Prepare documentation: Governance plans, fit-and-proper assessments for management/owners, capital proof, AML policies, risk systems.
2. Lodge with competent authority (Bank of Italy for custody/ARTs/EMTs; Consob for exchanges/platforms).
3. Undergo review for compliance; authorization grants EU-wide passporting.
4. Existing OAM-registered VASPs transition by applying before deadlines (June 30, 2025, for new ops; Dec 30, 2025, extension).[1][3][4][7][8]

OAM: https://www.organismo-am.it/ (VASP registry); Consob: https://www.consob.it/; Bank of Italy: https://www.bancaditalia.it/ [1][3][6]