Bankitalia, Esma alert on crypto-activity from non-EU platforms

Esma, the European Securities and Markets Authority, has sounded the alarm on cryptocurrencies: "It has issued a communication in which it invites European authorities to take into account the possible outbreaks of risk that may be generated on platforms outside Europe, but produce effects within European borders, which are also regulated". This was said by the representative of the Bank of Italy's Monetary Circulation and Retail Payments Department, Massimo Doria, at a hearing before the Senate Finance and Treasury Committee.

Doria reported estimates that 'by the end of last June, the cryptocurrency complex had reached a market capitalisation of between USD 2.2 and 2.5 trillion globally'. A 93% share would be attributable to 'unsecured' crypto assets, such as bitcoins, so defined because there are no assets such as currencies or securities to which their value is pegged. "The holding of unsecured crypto assets is driven primarily by speculative purposes and incorporates very high risks," Doria pointed out.

The Bank of Italy, on the other hand, 'expresses its appreciation' for the regulatory scheme implementing Micar, the European Mica regulation on crypto-activities 'whose preparation is also being supported'. "Even Micar," Doria added, "like all regulatory interventions that regulate phenomena that are constantly changing and highly innovative, does not always succeed in capturing all the complexities of these new markets and focusing on their risks. On the other hand, the European legislator was aware of this limitation and provided for a review clause at two years' notice'.