Under consideration by the Government

Crypto-assets, the clampdown arrives: penalties from 30,000 to 5 million euro

The text of the decree implementing the EU regulation on cryptocurrency is ready. Criminal sanctions are also envisaged: imprisonment from six months to four years and a fine ranging from EUR 2,066 to EUR 10,329 for anyone acting in breach of EU regulations

20 June 2024

2' min read

The crackdown on cryptocurrencies is coming. The Decree on virtual currencies for the adaptation of the national regulatory framework to the EU Regulation No. 2023/1114 of 31 May 2023 on cryptocurrency markets is under consideration by the government.

In addition to setting the rules for issuing cryptocurrencies and the authorisations required to operate in this market, the decree introduces important criminal and administrative sanctions.

Penal sanctions

Article 30 of Title IV introduces the reclusion from six months to four years and a fine from EUR 2,066 to EUR 10,329 for anyone who 'offers tokens linked to assets to the public or requests and obtains their admission to trading' in violation of EU rules (Article 16 of EU Regulation 2023/1114).

Criminal sanctions are also triggered for those who 'provide cryptocurrency services in violation of Article 59' of the same regulation, i.e. who 'issue electronic money tokens in violation of the reservation in Article 48' and 'offer electronic money tokens to the public or request and obtain their admission to trading in the absence of the issuer's prior written consent'.

Administrative sanctions

Articles 31 and 32 of the decree introduce 'administrative sanctions relating to infringements of the provisions referred to in Article 111 of Regulation (EU) 2023/1114'.

For legal persons, there are administrative fines that start from EUR 30,000 and can go up to EUR 5 million, or, if the amount is higher, a sum varying from 3 to 12.5 per cent of the total annual turnover, depending on the rule violated.

With regard to individuals, including corporate officers and personnel, the administrative pecuniary sanction provided for by the decree ranges from EUR 5,000 to EUR 75,000.

Article 33 regulates abuse and unlawful disclosure of inside information and market manipulation. Specifically, it is 'punished with a pecuniary administrative sanction from EUR 5,000 up to EUR 5 million whoever violates the prohibition of insider trading set forth in Article 89 of Regulation (EU) 2023/1114, of unlawful communication of inside information set forth in Article 90 or of market manipulation set forth in Article 91 of the aforementioned regulation'.

It also provides for sanctions for non-cooperation or failure to follow up an investigation.

Finally, the decree establishes that administrative sanctions may be applied by the Bank of Italy and Consob, with the exception of those relating to the issuance, offer to the public and request for admission to trading of electronic money tokens, which are applied by the Bank of Italy.