Italy begins review of cryptocurrency safeguards as risks increase

Italy’s Economy Ministry has ordered a detailed review of current safeguards against crypto risks, officials announced Thursday.

The regulator added that the review will focus on safeguards for direct and indirect investments in crypto assets by retail investors.

The decision was taken during a meeting of the Macroprudential Policy Committee. According to Reuters, the committee includes the heads of the Bank of Italy, market watchdog Consob, the insurance and pensions regulator, and the finance secretary.

Committee members warned that risks posed by crypto assets could increase. They said that increasing links between cryptocurrencies and the broader financial system and inconsistent international regulation could increase vulnerabilities.

The commission said Italy’s economic and financial situation was generally stable. At the same time, global uncertainties continue to pose challenges to financial stability.

The review will examine how existing rules protect investors and the financial system. Officials said the aim was to identify gaps and recommend measures to strengthen safeguards, Reuters reported.

Italy has stepped up its oversight of digital assets in recent years. Authorities have expressed concerns about investor protection, market integrity and potential spillover to the broader financial system. The new review indicates a more cautious approach to the introduction of cryptocurrencies in the country.

Italy’s cold treatment of virtual currencies

Italy last year proposed a significant tax increase on crypto transactions as part of its October budget plan, aiming to increase the return on digital assets from 26% to 42%.

Although the measure was intended to shore up public finances, it quickly drew criticism from the crypto industry, which warned that such an aggressive increase would undermine the country’s competitiveness, especially as the EU prepares to roll out its Market in Cryptocurrency (MiCA) framework later this year.

Following severe criticism from Italy’s crypto industry, the government withdrew the proposal. Under the revised budget plan, capital gains tax on digital asset transactions is expected to rise to 33% from fiscal year 2026, according to reports.

Last week, Bitizenship was launched BTC Italy and bitcoin dolce visaa Bitcoin-aligned route to obtaining an Italian investor visa through a startup investment of 250,000 euros.

The Milan-based venture operates as an “innovative startup” focused on Bitcoin layer 2 yield generation and treasury management, giving applicants exposure to Bitcoin-native businesses while remaining within the Italian regulatory framework.

The initiative comes amid Italy’s strong economic performance, including record exports, a trade surplus of 46 billion euros, stabilization of public debt and a stock market that has doubled since 2020. Capital market reforms are on the horizon and competitive tax incentives make the country an increasingly attractive destination for foreign investors.

Under this program, applicants receive visa approval before committing any funds. BTC Italia maintains its finances in Bitcoin, uses non-custodial Layer 2 staking for its operations, and offers a redemption period of every 24 months.

This article Italy begins review of crypto protection measures due to rising risks was originally published in Bitcoin Magazine and written by Micah Zimmerman.