Italy will tax profits from cryptocurrency trading that will exceed EUR 2,000 per year
The Italian government plans to impose a 26% tax on some digital currency investors.
The Italian government reportedly intends to impose a tax on profits from cryptocurrency trading if these exceed the level of EUR 2,000 per year. The tax rate is to be as high as 26%. Investors who earn less than the aforementioned amount from digital currencies will not be subject to the increased tax rate. A new law related to virtual currencies could be implemented in Italy from January next year.
Italy will tax profits from cryptocurrency trading
According to information published by Bloomberg, the Italian authorities may be planning to impose a tax on profits from trading virtual currencies. Reportedly, work on the act under which the latest tax changes would be implemented is already at an advanced stage.
According to recent reports, earnings related to profits from crypto assets may be subject to different tax rates. Those who gain more than EUR 2,000 in cryptocurrencies in a year will pay a tax rate of 26%, however, investors who voluntarily disclose the amount of digital assets they hold, starting from January 2023, will be subject to a tax rate of 14%.
The Italian government allegedly hopes that the possibility of paying a lower tax may be an incentive for virtual currency traders to provide information about their digital assets. The proposed law also contains provisions requiring the disclosure of such information.
The Italian regulator issues licenses to companies in the crypto industry
The Italian entity regulating payment services - Organismo Agenti E Mediatori (OAM) has given the green light to several cryptocurrency platforms wishing to provide their services in this country. Among the entities authorized to operate in Italy was the stock exchange run by the Winklevoss brothers - Gemini. It has been registered as a "virtual currency operator".
A similar license was also granted to the Nexo lending platform. From the beginning of its activity, this company has tried to maintain good relations with global regulatory authorities. Obtaining a license from the Italian OAM is part of its plan to strengthen its position in this country and Europe.