Italy has taken a major step in regulating digital assets by approving amendments to the 2023 budget that would impose a 26% tax on capital gains derived from trading in cryptocurrencies. The move follows in the footsteps of other European countries that have taken steps to regulate the crypto market.
Previously, digital coins and tokens were treated as foreign currencies, implying lower taxation. However, this new law put forward by Prime Minister Giorgia Meloni’s government gives Italian taxpayers the option to declare the value of their assets as of January 1, 2023, and pay a tax of 14%. The aim is to encourage Italians to declare their digital assets on their tax returns.
Italy’s stricter stance on digital assets is in line with Portugal, which in October 2022 announced its plan to tax short-term gains from digital assets at 28%. Portugal was previously considered one of Europe’s most cryptocurrency-friendly countries, but this move marks a significant change in approach.
This new regulation marks a significant development in Italy’s crypto market, and it is expected to have a major impact on investors, traders, and companies operating in the digital asset sector. With more governments taking an interest in regulating digital assets, it is becoming increasingly clear that this market is here to stay and will continue to grow in importance.
Despite the increased scrutiny, there is a growing recognition of the benefits of digital assets, including their potential for financial inclusion, lower transaction fees, and faster processing times. As such, it is important for regulators to strike a balance between ensuring the safety and stability of the financial system while also allowing for innovation and growth in the digital asset sector.
In conclusion, Italy’s move to impose a tax on capital gains from digital assets is a significant step in regulating this market. With more governments taking similar measures, it is becoming clear that digital assets are a crucial part of the financial landscape and will continue to grow in importance in the years ahead.
