2 mins read The Italian government is debating whether it can introduce a 26% tax that would be imposed on capital gains higher than €2,000 yielded from crypto trading and assets.
The move comes as Italy becomes a more attractive place for crypto companies, with the likes of Binance setting up shop in the country.
The new tax is a change from the previous regulatory mandate that treated cryptocurrencies as a foreign currency and is a step towards a future in which cryptocurrencies and assets do not exist outside of the financial system but are levied with a fair rate of taxation.
Italy is not the only country where crypto companies are expanding, with more crypto exchanges flocking to the Old World. Gemini, Binance and Bitpanda have all set up shop across the Mediterranean with registrations in places like Portugal, Greece, and not least – Italy.
Germany and Switzerland have also attracted their fair share of new entries over the past year.
Meanwhile, Italy is also planning to allow investors who have crypto holdings to be taxed at a lower rate of 14% as of January 1, 2022.
The European Union (EU) as a whole has been pushing towards a future in which all crypto operations and transactions will be regulated under the same framework, known as MiCA.
However, before pan-European legislation is available, EU member states will act independently in finding a way to hold crypto holders accountable.
Meanwhile, the UK has taken a tougher stance on cryptocurrencies of late, with the tax authorities in the country seizing NFTs as part of an investigation into tax fraud.
Other jurisdictions have tried to attract more crypto investors, including those that may be fleeing countries such as Italy and the UK.
Costa Rica, for example, promised to remove almost all taxes associated with Bitcoin to attract more investors and create a hub.
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