Italy’s Economy Ministry has mandated a comprehensive review of existing protections against crypto risks, as announced by officials on Thursday. This detailed examination will specifically concentrate on safeguards for both direct and indirect investments in crypto-assets by retail investors, according to regulators. The decision was made during a meeting of the Committee for Macroprudential Policies, which includes key figures such as the heads of the Bank of Italy, market watchdog Consob, insurance and pension regulators, and the Treasury’s director general, as reported by Reuters.

Committee members expressed warnings that the risks associated with crypto-assets have the potential to escalate. They highlighted that growing interconnections between the crypto market and the broader financial system, coupled with inconsistent international regulatory frameworks, could amplify existing vulnerabilities. While acknowledging that Italy’s overall economic and financial conditions largely remain stable, the committee noted that persistent global uncertainty continues to present challenges to financial stability. The review's objective is to scrutinize how current regulations protect both investors and the financial system, with officials aiming to pinpoint any gaps and propose measures to bolster these safeguards, Reuters further reported.

In recent years, Italy has intensified its monitoring of digital assets, with authorities frequently voicing concerns regarding investor protection, market integrity, and the potential for spillover effects into the wider financial system. This new review signals a more deliberate and cautious approach to crypto adoption within the country.

Italy has previously demonstrated a somewhat reserved stance towards crypto. Last year, as part of its October budget plan, Italy proposed a significant tax increase on crypto trades, aiming to raise the capital gains rate on digital asset earnings from 26% to a steep 42%. This measure, intended to boost public finances, quickly faced strong criticism from the crypto industry, which argued that such an aggressive hike would undermine the country’s competitiveness, particularly as the European Union prepared to roll out its Markets in Crypto-Assets (MiCA) framework later in the year. Following widespread criticism from the Italian crypto industry, the government ultimately rescinded its initial proposal. Under the revised budget plan, the capital-gains tax on digital asset trades is now expected to increase to 33%, with implementation projected for the 2026 financial year.

Despite previous regulatory hesitations, new initiatives are emerging. Just last week, Bitizenship launched BTC Italia and The Bitcoin Dolce Visa, which offers a Bitcoin-aligned pathway for individuals to obtain Italy’s Investor Visa through a €250,000 startup investment. This Milan-based venture operates as an “Innovative Startup” focusing on Bitcoin Layer-2 yield generation and treasury management. It provides applicants with exposure to a Bitcoin-native business while strictly adhering to Italy’s existing regulatory framework. This initiative comes at a time when Italy is showcasing robust economic performance, including record exports, a substantial €46 billion trade surplus, stabilizing public debt, and a stock market that has doubled since 2020. With forthcoming capital-market reforms and competitive tax incentives, Italy is becoming an increasingly attractive destination for foreign investors.

Under the BTC Italia program, applicants receive visa approval prior to committing any funds. BTC Italia maintains its treasury in Bitcoin, employs non-custodial Layer-2 staking for its operational needs, and provides redemption windows every 24 months, offering a structured and regulated entry point for Bitcoin-focused investors into the Italian economy.