Italy launches ‘in-depth’ assessment of crypto risks

Italy has opened an “in-depth investigation” into retail investors’ cryptocurrency exposure, as digital assets continue to gain traction in mainstream markets and a patchwork of rules complicates supervision.

The Macroprudential Policy Committee, made up of the governor of the Bank of Italy, insurance and pension regulators and finance ministry officials, warned on Thursday that risks could increase due to “increasing connections to the financial system and regulatory fragmentation at international level.”

The Ministry of Economy and Finance initiated the study to assess safeguards for both direct and indirect crypto investments by private investors, an official said. statement.

The assessment highlights growing concerns in Europe that fragmented global rules are creating oversight blind spots, especially as the US focuses on them crypto-friendly policies and digital asset markets are surging past $3 trillion, according to CoinGecko facts.

“Divergent crypto regulation poses real risks,” said Ruchir Gupta, co-founder of Gyld Finance. Declutter. “It pushes higher-risk activities to jurisdictions with weak supervision and obscures where the financial risks really lie.

Gupta expects “meaningful convergence by 2026” as the US clarifies its regulatory path and provides both a reference point and economic pressure for others to join.

“The Italian study shows that regulators are now examining the impact of crypto on financial stability rather than treating it as a peripheral concern,” he added.

Aggressive surveillance phase

The Italian Commission’s announcement follows the Warning from the Bank of Italy in April, which identified the increasing global integration of crypto as a potential threat to financial stability.

The report cited sharp price increases following Trump’s victory and his administration’s pro-crypto approach, warning that if digital instruments “become more closely intertwined with the traditional financial system, greater vulnerabilities could emerge for markets and intermediaries.”

The bank also warned of conflicts of interest and gaps in governance, noting that around 75% of companies own significant shares Bitcoin The positions are based in the US, with a “negligible presence” in the Eurozone.

Europe is definitively entering “a phase of more aggressive supervision of fintech and crypto”, with Italy’s in-depth review being a “major escalation”, in addition to full enforcement of the Markets in the regulation of crypto assetssaid Nitesh Mishra, co-founder and CTO at hedging platform ChaiDEX Declutter.

The EU’s oversight will include “tighter licensing and capital rules” in addition to stricter AML guidelines, Mishra said, calling it “an important step” as the US still lacks clear frameworks and many island jurisdictions offer licenses with “minimal oversight”, leaving global protection gaps.

For crypto providers in the region, compliance costs for robust governance, disclosures and safeguards for investors will rise, but in return, he noted, companies will gain “regulatory certainty, easier EU-wide passporting and a competitive advantage over companies stuck in looser jurisdictions.”

“Serious players are likely to prioritize Europe as the gold standard, sidelining risky ports and serving retail users more safely,” Mishra added.