Italy Moves to Rein In Crypto as EU, U.S. Rules Diverge

The crypto industry has caught the attention of Italian regulators. Fabio Panetta, head of the Bank of Italy, warned that the sector faces serious risks, from wild price swings to cyberattacks and its potential use for illicit financial activities. He urged crypto companies to take responsibility by reinforcing their cybersecurity defenses and risk management systems to ensure both investor protection and the stability of the broader financial ecosystem.

U.S. vs EU: A Tale of Two Regulatory Paths

During the talks, the contrast between European and American regulatory approaches was a key point of discussion. Europe has implemented MiCA, providing a unified rulebook for all nations and crypto firms, whereas the U.S. still lacks a standardized framework, opting instead for individual case-by-case assessments. This divergence has led to a more predictable environment in Europe, while U.S. regulations remain fluid and often inconsistent.

Italian regulators are keeping a close eye on Donald Trump’s rumored crypto-friendly policies, expressing concern that deeper integration of digital assets into traditional finance could destabilize the global economy. Panetta pointed to the ongoing regulatory uncertainty in the U.S., where frequent court battles and inconsistent oversight continue to create turbulence in the industry.

These regulatory divergences between the United States and Europe will need to be carefully assessed, once the US authorities’ position becomes clearer, in order to understand their international implications,

Fabio Panetta remarks.

Even in the U.S., this regulatory model has drawn criticism from industry players. Take Coinbase, for example—the crypto exchange has found itself entangled in multiple legal battles with the SEC, highlighting the pressing demand for well-defined and transparent rules. By the end of 2025, the industry anticipates a structured regulatory framework that will harmonize innovation with investor safeguards.

Italy Tightens Stance on Crypto Payments as Risks Mount

Italian regulators are pushing for stricter oversight of online crypto transactions, arguing that major tech platforms should not allow direct crypto purchases via bank cards without proper risk evaluation and financial safeguards. Panetta highlighted money laundering concerns, emphasizing that the industry lacks sufficient controls.

Check this out: EU Tightens Cryptocurrency Regulations

Panetta warned that as the ability to create private tokens becomes more accessible, banks may see a decline in their dominance over financial transactions. Given the rapid expansion of tokenized assets, he argues that clearer but fairer regulations are needed to maintain order in the financial system while fostering innovation.

The discussions between the Bank of Italy, Consob, and crypto firms signal an effort to establish regulatory clarity and foster cooperation between traditional financial institutions and the digital asset industry.

European crypto regulations have sparked mixed reactions within the industry. While well-defined policies could enhance investor protection and market transparency, critics argue that excessive bureaucracy is driving companies toward more business-friendly regions like Singapore, Malta, and offshore tax havens.

Figures like Elon Musk and Donald Trump have openly criticized heavy-handed regulation, warning that it stifles innovation. The bigger concern? Despite endless discussions, most regulatory talks fail to produce real change.

Read on: Will the ECB Follow the U.S. in Adding BTC to Reserves?