Italy launches ‘in-depth’ review of cryptocurrency risks

MILAN, Dec 4 (Reuters) – 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.

(Reporting ‌by Sara Rossi, editing by Alvise ‌Armellini and Gavin Jones)