Italy orders non-compliant VASPs to exit by December 30, 2025

December 30 Deadline Enforced

Italy requires all virtual asset service providers (VASPs) to apply for MiCA authorization by December 30, 2025. Operators without applications face mandatory closure. The deadline applies to exchanges, wallet providers, and other crypto service firms operating in Italian territory. Law Decree 95/2025 extended the original June 30 cutoff by six months to allow firms time to prepare applications.

Closure Rules for Non-Compliant Firms

VASPs that fail to submit applications must terminate customer relationships by the December deadline. Firms denied authorization after applying receive 60 days to close operations. Those with pending applications can continue operating until June 30, 2026 under transitional rules. CONSOB, Italy's securities regulator, oversees the authorization process and has already blocked 10 unauthorized crypto websites in September 2025.

MiCA Framework Reshapes EU Market

Markets in Crypto-Assets Regulation (MiCA) establishes EU-wide crypto rules effective December 30, 2024. Italy's Decree 129/2024 implements MiCA domestically with uniform licensing standards. The framework covers crypto asset service providers (CASPs), replacing national VASP rules. Firms authorized in one EU country can operate across the bloc under passporting provisions. Over 3.6 million Italians are expected to hold digital assets by end of 2025.

Compliance Costs Drive Market Exits

Registration fees range from €50,000 to €150,000 depending on firm size and service scope. At least 18 percent of European crypto platforms shut down or exited the EU market by 2025 over inability to meet MiCA standards. Smaller operators face consolidation pressure as compliance and capital requirements exceed revenue potential. Major players including Binance, Kraken, and Coinbase control over 70 percent of the MiCA-compliant exchange market share in Europe.