The central bank of Italy raised alarm over the surging interference of stablecoins in the traditional financial sector.
Italy is a European Union (EU) country and crypto trading is legal in this country. Under the current regulatory measures, crypto Investors are required to pay 14% to 26% tax against the crypto investment profit. Within the next couple of years, Italy will adopt a new crypto regulation framework, as MiCA (the Markets in Crypto Assets), a crypto-dedicated bill, will come into effect across all the EU member countries in phases 2024-2025.
Recently the Bank of Italy published its Markets, Infrastructures and Payment Systems report and called the country’s regulators to introduce strict measures against stablecoins issuers.
#Bankitalia
#26June Alessandra #Perrazzelli discussed about the evolving regulatory landscape for #DigitalAssets at @pointzeroforum Panel “State of Global Digital Asset Regulation: Navigating Opportunities in an Evolving Landscape”#PZF2023 #PointZeroForum @sif_sfi @elevandi pic.twitter.com/Jm0OBeifZh
— Banca d'Italia (@bancaditalia) June 26, 2023
According to the Central Bank, the surging popularity of cryptocurrencies & stablecoins with several ups & downfalls causing big harm to the citizens.
According to the bank, close & strict regulatory measures on the stablecoins is a very necessary thing, as these stablecoins are playing a vital role to boost the Decentralised Finance (Defi) sector.
Furthermore, the report also noted that the majority of the crypto firms (stablecoin issuers & crypto trade platforms) are not decentralised enough, instead they control the majority of the financial activities & they are actual players who extract profit from the retail & smaller investors.
Bank asserted that regulators don’t need to bring attention to every type of crypto-related activity, e.g. the use of crypto & blockchain networks in decentralised identification, real estate, supply chain, voting, and carbon credits.
In particular, the Bank suggested targeting crypto & stablecoins activities involving payment services.
It is worth it to note that a similar kind of statement was also passed by the Indian Central Bank (RBI) which addresses the negative impact of the stablecoins emerging market.
Read also: Atomic Crypto wallet facing criticism, after giving security update
Bank of Italy calls for strict measures against stablecoins
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