Italy’s financial regulatory body has established a clear timeline for compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCA), urging virtual asset service providers (VASPs) to either apply for authorization or exit the market by December 30. This decision impacts VASPs currently operating within Italy and the retail investors relying on their services.

In an official release published recently, the Commissione Nazionale per le Società e la Borsa (CONSOB) reminded all VASPs registered with the Organismo Agenti e Mediatori (OAM) that December 30 is their final opportunity to operate under the existing framework.

After this date, only entities authorized as crypto asset service providers (CASPs) under MiCA, including those from other EU nations, will be permitted to provide crypto services in Italy.

CONSOB clarified that VASPs applying for CASP status by December 30 may continue their operations while their applications are processed but must cease activities by June 30, 2026, if not granted authorization.

For VASPs opting not to pursue authorization, CONSOB outlined mandatory actions which include halting operations, terminating user contracts, and returning crypto assets to customers based on their directives. Moreover, these VASPs must provide transparent information on their websites about their compliance plans with MiCA or their exit strategies.

The outlined regulations are part of Italy’s legislative efforts to implement MiCA, which establishes a transitional framework for VASPs, allowing them to transition smoothly into the new CASP system.

In a notable section titled “warnings for investors,” CONSOB warns that VASPs may lose their right to operate after December 30, urging investors to verify compliance information from their service providers. In the event of uncertainty, they are encouraged to seek clarifications or request the return of their funds.

In conjunction with these movements, the European Securities and Markets Authority (ESMA) also released a statement on the same day regarding the end of MiCA transitional measures, underlining that member states can temporarily extend existing licenses for providers, though such extensions will eventually conclude. This highlights how different member states are leveraging MiCA’s provisions to tailor their implementation, with Italy now enforcing defined operational timelines stricter than many of its counterparts.