Key Takeaways:

• Italy has set 30 December 2025 as the firm cutoff for crypto firms to apply for MiCA licensing or cease operations.
• Regulators have launched a nationwide review to assess crypto-market risks, particularly those affecting retail investors.
• Crypto users in Italy should check whether their platforms have applied for MiCA approval to avoid service disruptions or fund withdrawals.

Italy has declared 30 December 2025 as the final deadline for crypto firms operating in the country to comply with the European regulatory framework – Markets in Crypto-Assets Regulation (MiCA), while simultaneously launching an official review of broader crypto-market risks. 

Regulators in the country want to ensure that only properly licensed providers operate, and that systemic risks tied to crypto investments are carefully assessed.

What the deadline means for Italy’s crypto companies

On 4 December 2025, Commissione Nazionale per le Società e la Borsa (CONSOB), the Italian securities regulator, issued a public notice reminding all existing Virtual Asset Service Providers (VASPs; companies that provide crypto-related services) that 30 December is the last day they can continue operations under the old national registration system. 

Under MiCA, all VASPs must now become fully licensed Crypto-Asset Service Providers (CASPs) to keep offering crypto services in Italy. Any VASP that submits an application for CASP authorization by the deadline will be allowed to continue operations while the application is being processed, but only until 30 June, 2026. 

For firms that fail to apply by the deadline, the consequences are clear: they must cease all crypto-asset services in Italy, terminate existing contracts, and return all customer crypto-assets and funds in accordance with customer instructions. 

CONSOB also urged all retail investors in its notice that they must verify whether their provider has applied for MiCA authorization, or else ask for the return of their funds. 

This move aligns with a similar statement issued by the European Securities and Markets Authority (ESMA) on 4 December 2025. ESMA noted that transitional periods for older licenses will end soon, and companies without new approval need plans to safely close operations without harming customers.

Why Italy is reinforcing MiCA and launching risk review

At the same time that CONSOB reaffirmed the MiCA deadline, Italy has also initiated an “in-depth review” of the risks posed by crypto-assets, especially for retail investors. 

This review was ordered by the Committee for Macroprudential Policies, which includes the heads of CONSOB, Bank of Italy (the country’s central bank), regulators for insurance and pension funds, and the Treasury. 

According to the committee, the increasing integration between crypto-assets and the traditional financial system, along with fragmented international regulation, may heighten risks. The review aims to assess whether existing safeguards for retail and indirect crypto investors remain adequate amid growing global uncertainty. 

Officials noted that while Italy’s macroeconomic conditions remain broadly stable, vigilance is needed due to global financial instability and evolving dynamics in crypto markets. 

How the MiCA deadline and risk review impact everyday crypto users

The message for regular crypto users in Italy is simple: starting 31 December 2025, only platforms that are licensed under MiCA (i.e., CASPs) will be able to offer their services in the country legally. If you use a crypto exchange, wallet, or other service, check whether it has applied for MiCA authorization. If not, and the VASP fails to apply by 30 December, you could lose access to the service and may need to retrieve your funds.

The government is also simultaneously reviewing broader crypto-market risks, which could lead to new regulations or tighter investor protections, especially if links between crypto and traditional finance are deemed risky.

The situation remains fluid, and more announcements may come once the Committee for Macroprudential Policies concludes its review.