Italy’s Crypto Ultimatum: Get MiCAR Authorization By Dec 30 Or Get Out
Italy just drew a line in the digital sand. Crypto providers operating in the country now face a stark choice: secure authorization under Europe's new Markets in Crypto-Assets Regulation (MiCAR) framework by December 30, or prepare for an immediate market exit.
The Regulatory Countdown Begins
This isn't a gentle suggestion—it's a hard deadline from the Italian financial regulator. The move accelerates MiCAR's implementation timeline specifically for Italy, putting local and international crypto services on immediate notice. Firms that miss the cutoff won't be negotiating for more time; they'll be shutting down their Italian operations.
What MiCAR Authorization Demands
Getting the green light means proving operational resilience, consumer protection measures, and anti-money laundering protocols that meet stringent EU standards. For many smaller platforms, the compliance costs alone could be prohibitive—a classic regulatory move that often benefits the largest, best-funded players (who probably have lobbyists in Brussels anyway).
The Industry's Fork in the Road
Providers now scramble to assess their compliance gaps. Some will fast-track their applications, viewing Italy's €2 trillion economy as worth the regulatory headache. Others, particularly decentralized protocols or niche exchanges, may simply withdraw, calculating that the compliance burden outweighs the market access.
Europe's Fractured Crypto Landscape
Italy's aggressive stance highlights a growing divergence in how EU nations interpret and enforce MiCAR. While the regulation provides a continent-wide framework, national regulators like Italy's are setting their own tempos and thresholds. This creates a patchwork of requirements—exactly what MiCAR was supposed to eliminate.
A Glimpse of Crypto's Regulated Future
This ultimatum offers a preview of crypto's inevitable maturation: less wild west, more wall street. For consumers, it promises greater security but potentially less choice and innovation. For the industry, it's another compliance tax—the boring, expensive reality of going mainstream, where the only thing decentralized is the blame when things go wrong.
Regulatory Shift Moves Italy Toward Europe’s Unified Crypto Rulebook
VASPs that file an authorization application by Dec. 30, either in Italy or in another EU member state, will be allowed to keep serving customers while supervisors process their files. That temporary window will close once the application is approved or rejected, and in any case no later than June 30, 2026.
The current regime in Italy only requires VASPs to register with the OAM. Under MiCAR, CASPs will need prior authorization from their supervisory authority and will then come under ongoing supervision, aligning Italy with the wider European push for stricter oversight after a series of global exchange failures and token collapses.
To support an orderly and transparent transition, Consob issued a detailed notice that mirrors guidance published the same day by the European Securities and Markets Authority. The document spells out what retail users should do as the deadline approaches and what operators must put in place if they plan either to seek a license or wind down.
Regulator Warns Users To Verify VASP Status Before Year-End Cutoff
For investors, the regulator stressed that some VASPs currently operating may no longer be allowed to do so after December 30. It said clients should check whether they have received clear information from their provider on its plans, and if not, ask for an explanation of how it intends to comply with the new framework.
Consob also told users to verify that a firm is legitimately allowed to operate in Italy after the deadline, either by checking the OAM list of VASPs or the ESMA register of authorized CASPs. If a provider is not legitimate, it cannot continue to offer crypto-asset services to the public and customers have the right to ask for the return of their funds or tokens.
On the operator side, Consob recalled that it has already shared guidance through meetings and public communications, including a notice in Sept. 2024 with initial instructions for firms and another in July 2025 when the national transition period was extended to June 30, 2026. It also sent a specific warning on October 31, 2025 to VASPs on the OAM list that still lack MiCAR authorization.
The regulator said VASPs that choose not to seek authorization as CASPs must stop their activities in Italy by December 30, 2025 and close existing contracts. They must return crypto-assets and related funds to customers in line with client instructions and end all services, including custody and administration.
VASPs that remain on the OAM register are required to post clear information on their websites and provide direct notice to clients on the steps they plan to take, whether that is applying for a MiCAR license or exiting the market in an orderly way.
