Crypto.com, a Singapore-based crypto exchange, and the Trade Republic, a German investment platform, have both registered as cryptocurrency operators in Italy, following the footsteps of competitors such as Binance and Coinbase.
Expanding to New Regions
To protect Italian savers, the Ministry of Economy created an electronic registry of all cryptocurrency operators that have a stable presence in the country by working with the Brokerage Regulatory Authority Organismo Degli Agenti e dei Mediatori (OAM) in February. Cryptocurrency operators had to meet certain criteria in order to be included in the registry.
Across the world, financial watchdogs are scrambling to figure out what can be done to regulate the crypto market, for which there are patchy rules. It is important to note that consumer protection, the threat to financial stability, and the illicit use of digital coins are among the key issues on regulators’ agendas.
Kris Marszalek, co-founder and chief executive officer of Crypto.com, said:
“We are excited to receive this registration in Italy and view it as a major step forward for Crypto.com. We are committed to building lasting growth in the region and will continue working with regulators.”
The registration of Crypto.com in Italy follows the company’s entry into the Greek market just a few months ago.
As for the Trade Republic, it has recently started to offer crypto services in the Spanish market. As well as offering shares, derivatives, and exchange-traded funds that are cleared by Italy’s market regulator, Consob, it also offers investments in other asset classes.
As part of its expansion to the Italian market, the Italian branch of Binance, one of the largest cryptocurrency exchanges, registered in May.
Coinbase Global, which is based in the U.S., announced on Monday that it had met the requirements to be listed on the OAM registry to serve Italian customers.
Specifically, the OAM is responsible for overseeing financial agents and credit brokers in Italy as well as implementing anti-money laundering measures.
According to the latest news, crypto companies have received registration permits in Italy, which is a promising sign that the country is expanding its crypto market. In the region, there are surely a great number of crypto users, and it is certainly a good idea for them to work with regulated and registered companies so they can have peace of mind.
Regulating the ecosystem can help it grow at a faster pace, though it will always come with limitations. It is still the case that there are a large number of users who prefer registered services when it comes to buying and trading cryptocurrencies.
DeFi services and DEXs are not familiar to many people, and they are not sure how to use them or work with them. In turn, CEXs have great popularity in the crypto-economy and are able to assist the ecosystem by finding new users and helping it grow faster as a result.