Italy Warns Crypto Firms to Meet MiCA Rules or Face Suspension

Highlights:

• Italy warns crypto firms to follow MiCA rules before the end of 2025.
• Authorities said firms must get licenses or stop operations and return all customer funds.
• Investors should check crypto platforms’ registration to protect their funds and tokens.

Italy’s financial regulator has issued a strong warning to crypto companies and investors as the Markets in Crypto-Assets Regulation (MiCA) compliance deadline approaches. Firms operating without meeting MiCA rules must act before December 30, 2025, or risk being suspended.

Italy Sets MiCA Compliance Deadline for Crypto Companies

Currently, crypto companies registered in Italy can continue their business under MiCA’s temporary rules. To operate legally after the deadline, they must apply to become licensed crypto-asset service providers (CASPs) in Italy or in another EU country. Consob, the Italian financial authority, shared the guidance on Thursday to help firms understand the next steps.

If a company submits its application on time, it can continue serving customers while the license is being reviewed, but this period cannot extend beyond June 30, 2026. Companies that fail to apply must stop all operations by December 30, 2025, close existing contracts, and return all customer funds.

Italy’s financial regulator Consob has warned investors and Virtual Asset Service Providers (VASPs) that the MiCAR transition period will end on December 30, 2025. VASPs that do not apply for authorization as Crypto-Asset Service Providers (CASPs) by the deadline must cease…

— Wu Blockchain (@WuBlockchain) December 5, 2025

To support a smooth transition, Consob released detailed guidance following instructions from the European Securities and Markets Authority (ESMA). The guidance explains what both operators and retail users must do as the compliance deadline approaches. This warning makes it clear that MiCA compliance is mandatory for all crypto service providers in Italy, and firms must act quickly to avoid penalties or forced shutdowns.

Consob also reminded retail users in its latest notice to check their crypto provider’s status. Users should look at the OAM VASP list or the ESMA CASP register before the end of the year. If a platform has not explained how it will comply with MiCA, customers should ask for a clear plan. If a firm is not properly registered or authorized after the cutoff, customers have the right to request their funds or tokens back.

Italy Reviews Crypto Risks for Investors

Italy’s Committee for Macroprudential Policies (CPMaP) met on December 4 in Rome to review financial risks linked to crypto-assets. The meeting was led by Governor Fabio Panetta and included leaders from Consob, COVIP, IVASS, and the Treasury. The committee warned that crypto-assets could create growing risks. Their connections with the traditional financial system are increasing, and global regulations remain uneven. This could affect banks, investors, and the wider economy if problems arise.

To address these risks, the Ministry of Economy and Finance has started a detailed review of protections for retail investors. The review looks at both direct and indirect exposure to crypto-assets to make sure individuals are safeguarded. The committee also stressed that crypto firms and investors should prepare for stricter oversight.

On Thursday, the European Commission also shared new plans to make EU capital markets stronger. They want to make cross-border business easier and give more power to the ESMA. The EU wants to keep up with the United States and China. Officials said improving the single market for services can help the EU perform better.