Italy’s Economy Ministry convened a macroprudential committee to review protections for retail crypto investors and the resilience of safeguards amid concerns about scams, rug pulls and systemic ties to the financial system. The review signals potential regulatory tightening to protect consumers and address the spillover risks of crypto-asset instability.

Italy has initiated an in‑depth macroprudential review focused on cryptocurrency risks that may affect retail investors and the broader financial system. Convened by the Economy Ministry, the committee will assess existing consumer protections, disclosure standards, and the potential for contagion between crypto markets and regulated financial institutions. The move reflects mounting international concerns over scams, sudden collapses of crypto platforms, and the opaque nature of many crypto‑linked products that have resulted in significant investor losses. Officials said the review will examine regulatory gaps—such as custody safeguards, investor suitability checks, and anti‑fraud enforcement—and evaluate whether additional prudential measures, transaction reporting, or marketing restrictions are warranted to curb consumer harm. Italy’s action mirrors a broader trend among European and global regulators seeking to balance innovation with financial stability and consumer safety. Outcomes could include tighter oversight of retail crypto offerings, enhanced enforcement powers, and coordination with EU and international bodies to reduce cross‑border arbitrage that currently allows risky actors to exploit regulatory fragmentation.