Italy launches an in-depth review of cryptocurrency risks

The Italian Ministry of Economy and Finance has launched an in-depth review of the risks of cryptocurrencies for retail investors, aimed at assessing the safeguards for direct and indirect investments in crypto assets.

The Macroprudential Policy Committee, composed of the Governor of the Bank of Italy, insurance and pension regulators, and officials from the Ministry of Finance, warned on Thursday that, given the increasing interconnectedness of crypto assets with the financial system and the fragmentation of international regulation, related risks may rise. This move follows a warning issued by the Bank of Italy in April, which previously pointed out that the global integration of crypto assets poses a potential threat to financial stability. Ruchir Gupta, co-founder of Gyld Finance, stated that regulatory differences do pose risks, and meaningful regulatory convergence is expected by 2026 as the U.S. clarifies its regulatory path.