Italy is contemplating a selective implementation of the European Union's Market in Crypto Asset Regulation (MiCAR), focusing specifically on electronic money tokens (EMTs) rather than asset-reference tokens (ARTs).

Bank of Italy Governor Fabio Panetta emphasised that EMTs, which can be issued by banks or electronic money institutions, are viewed as the most reliable means of payment to maintain public trust.

This stance contrasts with MiCAR's requirement for authorisation of both EMTs and ARTs across the EU.

Italy's approach aims to clarify regulatory standards while ensuring the stability of its payment system.

Additionally, Italy is considering introducing stricter penalties for crypto-related offenses, such as insider trading and unauthorised disclosure of information, to combat market manipulation.

The Bank of Italy and market regulator Consob are expected to oversee crypto activities to maintain financial stability and market orderliness.