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Changes in Italy's Crypto Tax Law

by
Deepak Pareek
3
min read

Recently, the Deputy Economy Minister Maurizio Leo has proposed to increase the capital gain tax rate on Bitcoin from 26% to 42%. The move coincides with the European Union’s preparation to implement its Markets in Crypto-Assets Regulation (MiCA), which aims to create a unified regulatory framework for cryptocurrencies across the EU.

Currently, Italy taxes capital gains from cryptocurrencies over €2,000 ($2,171) at 26%, classifying them as “miscellaneous income.” The proposed hike is one of measures taken by the Italian government to stabilize the country’s economy. In the recent past, Italy has seen huge upsurge in adoption of Bitcoin.

Apart from the above increase, the Italian government is also preparing to introduce MiCA regulations in Italy. The legislative decree of September 5, 2024, No. 129, published in Official Gazette No. 215 on September 13, 2024, implements the provisions of the European Regulation 2023/1114, into Italian law. The new rules primarily focus on the regulation of crypto-assets, market transparency, investor protection, and the proper management of financial assets. Correspondingly, amendments were also made Italian Banking law.

The MiCAR Regulation will come into full effect on December 30, 2024, while the provisions for issuance, public offering, and trading admission of EMT and ART have been in effect since June 30, 2024.

Links for reference -

https://www.boccadutri.com/crypto-assets-micar-regulation/#:~:text=The%20new%20rules%20primarily%20focus,Legislative%20Decree%2058%2F98

https://decrypt.co/286630/italy-increase-bitcoin-capital-gains-tax

https://btctimes.com/italy-considers-raising-bitcoin-capital-gains-tax-to-42-from-26/#:~:text=Italy%20plans%20to%20raise%20the,for%20the%20Digital%20Services%20Tax.

FeatureUse Case ScenarioTechnical  Details
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