Italy launches in-depth review of cryptocurrency risks

Odaily Planet Daily reports that Italy's Ministry of Economy and Finance has launched an in-depth review of the risks associated with cryptocurrencies for retail investors, aiming to assess safeguards for direct and indirect investments in crypto assets. The Macroprudential Policy Committee, comprised of officials from the Bank of Italy's governor, insurance and pension regulators, and the Ministry of Finance, warned on Thursday that the risks could rise given the increasing interconnectedness of crypto assets with the financial system and the fragmentation of international regulations. This move follows a warning issued by the Bank of Italy in April, which noted 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 indeed pose risks, and he expects meaningful regulatory convergence to occur by 2026 as the US clarifies its regulatory path.