Italy launches in-depth review of cryptocurrency risks to address regulatory fragmentation challenges

The Italian Ministry of Economy announced that it has initiated an "in-depth review" of the current risk prevention mechanisms related to cryptocurrency investments, aiming to assess whether the protections for retail investors in the process of directly or indirectly investing in crypto assets are adequate.

This decision was made by the Macroprudential Policy Committee, which consists of the Bank of Italy, the market regulator Consob, the insurance and pension regulator, and the Ministry of Finance. Regulators have warned that as crypto assets become increasingly intertwined with the traditional financial system and the issue of fragmented international regulation intensifies, their potential risks may further rise. Currently, the overall economic and financial situation in Italy remains stable, but it faces high global uncertainty.