Italy’s market watchdog, Consob, has issued a firm deadline for crypto providers, ordering them to secure authorization under the European Union’s new regulatory framework by December 30, 2025, or shut down their local operations. This move signals a major shift from Italy’s current registration system to the stricter, fully supervised rules of the Markets in Crypto-Assets (MiCAR) regulation.

The Transition to Europe’s Unified Rulebook

Under the new guidelines, Virtual Asset Service Providers (VASPs) that apply for MiCAR authorization by the December deadline will be permitted to continue serving customers while regulators process their files. This temporary operating window will close once an application is approved or rejected, and will not extend beyond June 30, 2026.

The transition aligns Italy with a wider European push for stricter oversight in the wake of several global exchange collapses. The current Italian regime only requires VASPs to register with the national agents and brokers registry (OAM). MiCAR, however, requires firms to become fully authorized Crypto-Asset Service Providers (CASPs), placing them under ongoing supervision by a national authority.

Regulator Advises Users to Verify Provider Status

Consob has stressed that investors should pay close attention, as some currently active VASPs may no longer be allowed to operate after the cutoff. The regulator advises clients to confirm that their provider has shared clear information about its MiCAR compliance plan. If not, customers should request an explanation of how the firm intends to meet the new requirements.

Investors can verify a company’s status by checking the OAM list of registered VASPs or the European Securities and Markets Authority (ESMA) register of authorized CASPs. If a provider is not legitimate after the deadline, it cannot continue offering services, and customers have the right to request the return of their funds and digital assets.

Clear Directives for Market Participants

For operators, Consob’s instructions are twofold. Those who choose not to seek authorization as CASPs must cease all activities in Italy by December 30, 2025. This includes closing existing contracts and returning all crypto-assets and related funds to customers.

All VASPs currently on the OAM register must clearly communicate their intentions on their websites and in direct notices to clients. They must state whether they are applying for a MiCAR license or preparing for an orderly exit from the market.