Last Updated on 2 hours by John Piper

The budget for 2023 was approved by the Italian Senate just before the new year. The Senate included a modification in the regulation governing cryptocurrency taxation laws in its budgeting document. Crypto investors will be subject to a 26% tax on any gains earned from cryptocurrency assets worth more than EUR2, 000.

The new legislation defines cryptocurrency assets as digital representations of value or rights that can electronically be transferred using distributed ledger technology. Before this legislation, digital currencies and digital funds like Bitcoin and Ethereum were considered foreign currencies under Italian law. These assets are subject to lower taxes than the new crypto tax laws. In order to reward Italians who declare their digital assets, the bill provides that citizens holding cryptocurrency can declare the amount they have at the start of the year. They will also be subject to a 14% reduction in tax.

The new bill will provide tax breaks and amnesties that reduce fines for certain financial protocols such as missed taxes payments or a reduction of the retirement age. Tax breaks will be available to households and businesses that have been affected by the energy crisis. This is done in order for the country to retain its workforce and promote job creation. Italy is currently struggling with fuel consumption. The government is working to reduce it with measures like reduced heating in buildings, and shorter hours of electricity cut.

The new budget bill of Giorgia Meloni, the Italian prime minister, has been supported by the financial and regulatory bodies. This new legislature follows the October 2022 approval of the Markets in Crypto Assets bill. It was created to provide a common framework for all EU countries. Officially, the Markets in Crypto Assets (MiCA), will be introduced in 2024. This will establish regulations for cryptocurrency in 27 European countries.

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