Italy is reportedly considering increasing penalties for cryptocurrency crimes in an effort to combat market manipulation. According to a draft decree, fines ranging from €5,000 to €5 million ($5,400 to $5.4 million) could be imposed for offenses such as insider trading, unauthorized disclosure of inside information, and market manipulation. The Bank of Italy and market regulator Consob would be responsible for overseeing crypto activities and ensuring financial stability and orderly market functioning. The move follows the Bank of Italy’s emphasis on the need for a strong regulatory framework for stablecoins and the creation of a supervisory environment in anticipation of the European Union’s forthcoming regulations. However, it is unclear if this framework has been fully implemented. Previous surveys conducted by the Bank of Italy indicated that only about 2% of Italian households held crypto, with limited exposure of Italian financial intermediaries to the market.