The Italian government gives more time for Virtual Asset Service Providers to obtain MiCAR authorisation
Published on 2nd July 2025
MiCAR 'grandfathering' period's original deadline postponed and opening now available to 'regulatory shopping'
On 25 June the Italian government passed a Law Decree – finally published in the Official Gazette on 30 June, with number 95/2025 - setting setting out an extension of the time period within which virtual asset service providers (VASPs) operating in Italy are required to seek the authorisation provided for under Markets in Crypto-Assets Regulation (MiCAR) (EU Regulation No. 1114/2023). An important provision has also been also introduced with regard to VASPs belonging to corporate groups.
New deadlines
VASPs already operating in Italy on 27 December 2024 and registered with the Italian financial agent and mediator authority - OAM - which is the body mandated to hold the register of virtual asset service providers, will be able to continue to provide services relating to the use of virtual currencies or digital wallets in Italy until 30 December 2025, instead of 30 June 2025. This is even if they have not yet obtained an authorisation pursuant to article 62 MiCAR, in Italy or in another EU country, or even simply applied for it.
At the same time, the final deadline within which – where such an application is timely filed and pending the conclusion of the authorisation procedure – VASPs may continue to operate in Italy has been extended from 30 December 2025 to 30 June 2026, save always the prior rejection or granting of the application.
Consequently, the deadline within which VASPs currently operating in Italy must publish on their website and transmit to their customers adequate information on the plans and measures they intend to implement to comply with the MiCAR, or for the orderly termination of the existing relationships with clients, has also been extended to 30 September 2025.
VASPs operating in Italy will have to continue to transmit electronically to the OAM, also for the second and third quarters of 2025 the data relating to completed transactions. The data relating to transactions carried out from 1 October 2025 onwards (instead of 1 April 2025) will have to be retained by the VASPs for 10 years and, if requested, made available to the public authorities.
Possible applicants for MiCAR authorisation
A key change to the previous regime has been introduced by paragraph 1a of article 10 of Decree-Law 95/2025. This now allows for a VASP that has been registered in Italy to avail itself of the transitional regime even when it is not the VASP itself but a company belonging to its corporate group that is seeking MiCAR authorisation.
More precisely, VASPs already registered in Italy on 27 December 2024 will be entitled to continue operating "until the grant or refusal of the authorisation pursuant to article 63 of Regulation (EU) 2023/1114 and, in any event, no later than 30 June 2026", even when the application requested under article 62 MICAR is submitted, in Italy or in a Member State other than Italy, before 30 December 2025, by another entity belonging to the same corporate group of the relevant VASP.
The applicable notion of "group" is that provided for by Directive EU/2013/34, which includes, in addition to the parent company, those companies directly or indirectly controlled by it (the "subsidiary undertakings"). It follows that also the notion of "control" must be interpreted in the light of the same directive and implementing laws.
This provision satisfies the requests made by VASPs, which are in many cases providers belonging to transnational groups; however, it also opens the doors to the possibility of regulatory shopping and allows these groups effectively to decide where to operate under the MiCAR regime.
Decree Law 95/2025 does not specify how the transfer of existing client relationships between the currently operating VASPs and the group entity that will eventually benefit from the authorisation under article 62 MICAR will have to take place.
Osborne Clarke comment
It will now be for the Italian Parliament, when converting the Decree Law into law under article 77 of the Constitution and within 60 days of the publication in the Official Gazette to make any additions or modification to the provisions set out within the Law Decree.
