The Italian securities regulator is considering setting up a policy that will allow securities tokenization in the future.
The regulator recently held a webinar with some top players in the industry to discuss workarounds regarding security token offerings.
Although the discussion didn’t reveal details, it’s believed that the outcome of the discussion will allow a crypto token to be represented as a traditional asset such as stocks.
However, the regulator stressed more about proper regulation of the assets and pointed out important objectives such as safe custody, investor protection, as well as counter-terrorism financing.
CONSOB has been known for its strict crypto policies
Investment bankers in Europe and other parts of the world have seen the tokenization of equities as highly appealing
It has been well received in friendly places like Switzerland where regulation of equities is more lenient.
But the Italian regulator has been bent on banning unregulated cryptocurrency companies, which has kept it from coming up with specific regulations. Now, it wants to take control of the entire regulatory framework after relying on pan-European initiatives to regulate crypto activities.
CONSOB is following some other European regulators such as in France where the Pacte Law takes care of a wide range of crypto-related activities.
There is no doubt that CONSOB has remained one of the strictest regulators in Europe when tackling illegal actors in the crypto space. It also recently demanded that the country’s investors should have limited access to crypto-focused websites. The regulator is carrying out this order through the country’s internet service providers (ISPs).
Italy also in the race for mass crypto adoption
Despite the stringent regulatory policies by the Italian regulator, the country is doing well when it comes to mass crypto adoption. Last year, CONSOB proposed two registers – one for digital wallet service providers and the other for crypto-asset exchanges.
The regulator wanted to allow digital asset exchanges to trade cryptocurrencies if they provide enough information to the public.
Additionally, a proposal was also sent to allow the introduction of intermediaries who would manage cryptocurrencies on behalf of their clients. Now the regulator is setting its eyes on security tokens, with the hope of providing a proper regulatory framework in the industry.