According to the new budget approved by the Italian Parliament on Thursday, crypto traders will have to pay a capital gains tax of 26% starting in 2023. Reuters reported that Giorgia Meloni’s expansionary budget for 2023 – which was completed in a rush before the end of the year – includes 21 billion euros ($22.3 billion) in tax breaks for households and businesses facing the energy crisis.
Those who make gains from crypto trading over 2,000 euros are subject to 26% capital gains tax from 2023. Crypto assets are legitimized by the Italian budget as “digital representations of value or rights” in Italy, where they are largely unregulated.
Italy (and most recently, Portugal) made the decision to impose a capital-gains tax on cryptocurrencies prior to the implementation of the European Union’s Markets in Crypto Assets (MiCA) regulation, which promises a licensing framework and stringent operating requirements for crypto-service providers in the 27-member bloc.
This is a progressive move by the Italian Parliament to recognize crypto assets as digital representations of value and rights in Italy.
