Crypto in Italy

Italy established its cryptocurrency regulatory framework through Legislative Decree No. 90/2017, which implemented the EU's Fourth Anti-Money Laundering Directive. The Bank of Italy and CONSOB (Commissione Nazionale per le Società e la Borsa) jointly regulate crypto assets, with the Bank of Italy overseeing AML/CFT compliance for virtual currency service providers under Legislative Decree No. 231/2007. On June 14, 2023, Italy's Ministry of Economy published a decree requiring crypto firms to register with the Organismo Agenti e Mediatori (OAM) for AML supervision. Italy is implementing the EU's Markets in Crypto-Assets Regulation (MiCA), with full compliance required by December 2024. The Bank of Italy issued specific warnings about crypto risks in February 2023, citing volatility and investor protection concerns. CONSOB maintains a blacklist of unauthorized crypto platforms, last updated March 2024 with 12 new additions.

Italy imposes a 26% capital gains tax on cryptocurrency profits exceeding €2,000 per tax year under Article 67 of the Presidential Decree No. 917/1986. The tax applies to both trading profits and mining income, with losses deductible only against crypto gains. In December 2023, the Italian government proposed increasing the capital gains tax to 42% as part of the 2024 budget law, but withdrew the proposal following industry backlash. Crypto-to-crypto transactions trigger taxable events, requiring detailed transaction records. The Italian Revenue Agency (Agenzia delle Entrate) issued specific guidance in September 2023 requiring taxpayers to report crypto holdings in the RW form of their annual tax return. Failure to report carries penalties of 100-200% of unpaid taxes plus interest.

Italy has approximately 1.3 million cryptocurrency users as of Q1 2024, representing 2.2% of the population according to CONSOB data. Trading volume on registered Italian exchanges reached €4.2 billion in 2023, a 15% increase from 2022. Institutional adoption remains limited, with only 12 registered virtual asset service providers operating as of March 2024. Major Italian banks including Intesa Sanpaolo and UniCredit have launched blockchain-based services but avoid direct crypto trading. The Bank of Italy's digital euro research program, initiated in 2021, involves 30 Italian financial institutions testing wholesale CBDC applications. Retail merchant adoption is minimal, with fewer than 500 businesses accepting crypto payments nationwide according to 2023 Chamber of Commerce data.