Italy launches 'in-depth' review of cryptocurrency risks
A representations of cryptocurrency Bitcoin and Binance is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration
MILAN, Dec 4 : Italy's Economy Ministry has ordered an in-depth review of existing safeguards against cryptocurrency risks, which are seen potentially rising, the Bank of Italy and other financial regulators said on Thursday.
"An in-depth review has been launched to assess the adequacy of existing safeguards for direct and indirect investments
in crypto-assets by retail investors," the regulators said in a statement.
The decision was taken at a meeting of the so-called Committee for Macroprudential Policies, including the heads of the Bank of Italy, market watchdog Consob, insurance and pension funds watchdogs, and the director general of the Treasury.
"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 members said in a statement
The committee, tasked with safeguarding the stability of Italy's financial system, said economic and financial conditions in Italy remain broadly favourable, albeit in a context of high global uncertainty.
