Crypto in Italy

Italy regulates crypto assets under a dual framework: the EU Markets in Crypto-Assets Regulation (MiCA), effective June 2023, and domestic laws like Legislative Decree 231/2007 (anti-money laundering). The Commissione Nazionale per le Società e la Borsa (CONSOB) oversees securities-like tokens, while the Bank of Italy handles virtual currency service providers (VASPs) registration. Since May 2022, all VASPs must register with the Bank of Italy’s Organismo per la Gestione degli Elenchi (OAM) under the 2021 Decreto Fiscale (DL 157/2021). CONSOB has issued multiple cease-and-desist orders against unregistered crypto platforms, including a 2023 action against Binance for unauthorized investment services. Italy’s approach is conservative: it has not yet implemented a comprehensive crypto-specific law beyond MiCA transposition, but the 2024 Budget Law (Legge 213/2023) introduced stricter oversight for crypto derivatives and stablecoins, aligning with ESMA guidelines. The Bank of Italy also requires VASPs to report suspicious transactions under the 2023 AML Decree (DLgs 125/2023).

Italy taxes crypto capital gains at a flat 26% rate, introduced via the 2023 Budget Law (Legge 197/2022). Gains realized from crypto-to-fiat conversions or crypto-to-crypto trades exceeding €2,000 in a tax year are taxable; below this threshold, gains are exempt. Losses can be carried forward for up to five years. A controversial 2025 Budget proposal (October 2024) sought to raise the rate to 42% for gains over €5,000, but this was withdrawn after industry backlash in December 2024. Self-declaration is mandatory via the Redditi PF form, with penalties for non-reporting up to 120% of the tax due. For businesses, crypto holdings are treated as inventory, taxed under IRES (24%) and IRAP (3.9%). Mining income is classified as self-employment income, taxed at progressive IRPEF rates (23%-43%). The Agenzia delle Entrate issued Circular 30/E in 2023 clarifying that staking and lending rewards are taxable as 'other income' at 26%.

Italy has 1.3 million crypto users (2024 estimate, Bank of Italy survey), representing 2.2% of the population. Trading volumes on centralized exchanges reached €4.2 billion in 2023, down 35% from 2022 due to market downturn, per Chainalysis. Institutional adoption remains low: only 12% of Italian asset managers hold crypto exposure (2024 Banca d’Italia report), but interest is rising—Intesa Sanpaolo launched a crypto trading desk in January 2024 for institutional clients. Retail use cases focus on remittances (€6.8 billion sent via crypto in 2023, per World Bank) and savings, with 40% of users holding Bitcoin. The Italian Blockchain Association (AIB) reports 150+ blockchain startups, concentrated in Milan and Turin. The 2023 Digital Italy Agency (AgID) pilot for blockchain-based public records (e.g., university diplomas) saw 10,000 certificates issued. Stablecoin adoption is growing: USDC and EURC account for 18% of on-chain transactions, per CoinMetrics.