Italy’s Ministry of Economy and Finance has initiated a full-scale review of how retail investors are protected from crypto-related risks. The move follows discussions held by the Committee for Macroprudential Policies, which includes the heads of the Bank of Italy, Consob, IVASS, and the Treasury. The decision reflects growing concern across Europe over the increasing ties between digital asset markets and traditional finance.
Committee orders review amid rising crypto risks
According to an official statement released after the committee meeting in Rome, the review seeks to “assess the adequacy of existing safeguards for direct and indirect investments in crypto-assets by retail investors.” The meeting, chaired by Banca d’Italia Governor Fabio Panetta, brought together leading financial supervisors from banking, insurance, and pension sectors.
“The risks associated with the spread of crypto-assets could increase due to growing interconnections with the financial system and regulatory fragmentation at the international level,” the committee said, as Reuters reported.
Regulators agreed that Italy faces a favorable financial environment, but high global uncertainty continues to pose challenges.
The meeting’s agenda included updates on economic conditions, market developments, and systemic vulnerabilities. Officials emphasized that although Italian banks and households remain financially sound, the rise of complex investment products, such as crypto-linked certificates, could expose individual investors to unexpected losses.
Regulatory caution as crypto adoption expands
The in-depth review underscores a strategic shift in Italian policy. Authorities are no longer viewing crypto only through the lens of innovation but as a potential financial stability issue. In April, the Bank of Italy highlighted that crypto’s growing global integration could heighten vulnerabilities if digital instruments become more closely entwined with the traditional financial system.
That warning echoed similar concerns raised by European counterparts. Policymakers worry that as crypto assets reach deeper into mainstream portfolios, oversight gaps and international inconsistencies may amplify systemic risk.
Industry observers say Italy’s decision fits into a broader European tightening trend. The EU’s Markets in Crypto-Assets (MiCA) framework will soon take full effect, introducing detailed licensing standards, capital requirements, and investor-disclosure obligations across member states.
Nitesh Mishra, co-founder and CTO of hedging platform ChaiDEX, said that Europe is “entering a phase of more aggressive supervision over fintech and crypto,” describing Italy’s in-depth review as a “key escalation.”
Mishra said the upcoming compliance obligations would raise operational costs for crypto service providers but also bring benefits such as “regulatory certainty, easier EU-wide passporting, and a competitive edge over firms stuck in looser jurisdictions.”
Italy’s evolving digital asset landscape
Italy has maintained a cautious stance on digital assets. In 2024, the government proposed a sharp increase in its crypto gains tax—from 26% to 42%—to strengthen fiscal income. After pushback from industry groups, the rate was revised to 33%, expected to take effect in 2026.
In parallel, the country has seen new Bitcoin-focused ventures launch under its regulatory regime. Bitizenship’s BTC Italia initiative, which offers a Bitcoin-linked pathway to Italy’s Investor Visa, represents one such project. It allows foreign applicants to invest €250,000 in an Italian startup, gain visa approval before committing funds, and gain exposure to Bitcoin through non-custodial Layer-2 treasury management.
The initiative coincides with improved macroeconomic fundamentals. Italy has posted record exports, a €46 billion trade surplus, and stronger capital markets. These developments have enhanced the country’s appeal to investors seeking diversification within the European Union.
Next steps for Italy’s crypto policy
The Macroprudential Policy Committee will continue its review in cooperation with domestic regulators and the Treasury. The group also plans to publish a detailed report on its findings by March 2026. Its analysis is expected to shape future policies on retail exposure to digital assets and establish clearer lines between innovation and investor protection.
As the global crypto market surpasses $3 trillion and international frameworks remain fragmented, Italy’s move adds both scrutiny and structure to how financial authorities approach digital-asset oversight. The review marks a turning point in how the country integrates crypto assets into its broader regulatory and economic landscape.
Tanya Petrusenko
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