Italy -- Stablecoin Regulations Regulatory Overview

Italy's regulatory framework for stablecoins is governed by the EU's Markets in Crypto-Assets Regulation (MiCAR)[1][2], which the Italian government has implemented through national legislation, with primary oversight by the Bank of Italy and CONSOB[2].

Classification of Stablecoins

Stablecoins in Italy are classified into two main categories under MiCAR[2]:

• E-Money Tokens (EMTs): Fiat-referenced stablecoins that must be fully backed with high-quality, liquid assets[2]
• Asset-Referenced Tokens (ARTs): Stablecoins referenced to multiple assets or commodities, subject to stringent reserve and risk-management rules[2]

Both categories are regulated as crypto-assets rather than traditional securities or payment instruments[1][2].

Reserve Requirements

E-Money Tokens must maintain full backing with high-quality, liquid assets[2]. Asset-Referenced Tokens face stringent reserve composition, liquidity, custody, and concentration requirements as detailed in MiCAR and European Banking Authority (EBA) regulatory technical standards[2]. All issuers must undergo regular reserve attestations and audited financials, with "significant" tokens facing enhanced reporting and stress-testing requirements[2].

Issuer Licensing and Authorization

Crypto Asset Service Providers (CASPs), including stablecoin issuers, must obtain authorization from national competent authorities[1]. In Italy specifically, existing CASPs had until December 30, 2025 to apply for authorization under MiCAR, with registration requirements through CONSOB, Italy's Financial Services Supervisory Authority[4]. Issuers must comply with detailed obligations regarding governance, capital requirements, segregation of client assets, and conduct of business[1].

Additionally, all crypto business operators must register with the Organismo Agenti e Mediatori (OAM) system for anti-money laundering (AML) compliance[4].

Redemption Rights

Under MiCAR's multi-issuance model, potential complications arise regarding redemption rights. When identical stablecoins are issued across multiple jurisdictions by different entities, EU-based issuers may receive redemption requests from holders outside the bloc, with third-country entities expected to transfer assets to cover reserve shortfalls[5]. However, third-country issuers are not necessarily subject to the same consumer protection, transparency, and disclosure requirements as MiCAR-regulated EU issuers, creating legal and financial risks that the Bank of Italy has urged the EU to clarify[5].

Algorithmic Stablecoin Rules

The search results do not contain specific provisions regarding algorithmic stablecoins. MiCAR's framework addresses reserve composition requirements for ARTs, but dedicated rules for fully algorithmic mechanisms are not detailed in the available information.

CBDC Interaction

The search results do not include information regarding interaction between stablecoins and Central Bank Digital Currencies (CBDCs) in the Italian regulatory framework.

Regulatory References and Authorities

• Primary Legislation: Regulation (EU) 2023/1114 — Markets in Crypto-Assets (MiCA)[2]
• Italian Implementation: Legislative Decree 2024 (approved to adapt national legislation to MiCA requirements); Law Decree 95/2025 (extending VASP registration deadlines)[4]
• Primary Supervisory Authority: Bank of Italy (financial stability, systemic risk, cross-border issuance)[2]
• Secondary Authority: CONSOB (securities-related aspects, investor protection, MiCAR disclosure compliance)[2]
• Regulatory Framework Resources: CONSOB maintains an overview and resources page for MiCAR implementation[2]

The Bank of Italy has additionally proposed that Germany and Italy create an EU-wide "kill switch" mechanism allowing the European Banking Authority to ban stablecoins from EU operations if reserve transfer mechanisms fail, issuers breach home country rules, or operations act against EU token holder interests[3].