Crypto in Italy

Italy regulates crypto assets through a patchwork of existing financial laws and new EU-wide rules. The Bank of Italy and CONSOB (Commissione Nazionale per le Società e la Borsa) share oversight. Since 2017, Italy has required crypto exchanges to register with the Organismo Agenti e Mediatori (OAM) under Decree Law 90/2017, later amended by Legislative Decree 125/2019. In 2022, Italy designated CONSOB as the competent authority for crypto-asset service providers (CASPs) under the EU's Markets in Crypto-Assets Regulation (MiCA), which entered into force in June 2023. MiCA's transitional period allows existing providers to operate until July 2026 if they notify authorities. Italy also applies anti-money laundering rules from Legislative Decree 231/2007, mandating customer due diligence for crypto transactions. The Bank of Italy has warned that crypto assets are not legal tender and carry high risks. In 2023, Italy's tax police (Guardia di Finanza) conducted raids on unregistered exchanges. Overall, Italy's legal framework is conservative, prioritizing investor protection and AML compliance over innovation.

Italy taxes cryptocurrency capital gains at 26%, classified as 'other income' under Article 67 of the Consolidated Income Tax Act (TUIR). Since January 1, 2023, gains exceeding €2,000 per tax year are taxable; losses can offset gains within the same year. Traders must report holdings and transactions in their annual tax return (Modello Redditi) using the RW and RT forms. The 2023 Budget Law (Law 197/2022) introduced a 14% tax on crypto gains for those who voluntarily regularize undeclared assets, plus penalties. In 2024, the government proposed raising the rate to 42% for gains above €2,000, but the measure faced backlash and was not enacted. A 0.2% stamp duty applies to crypto holdings declared in tax returns. VAT does not apply to crypto trading following the 2015 EU Court of Justice ruling in Hedqvist (C-264/14). Mining and staking income are taxed as business income if conducted habitually. Reporting obligations are strict, with penalties up to 120% of unpaid taxes for non-compliance.

Italy has over 1.3 million crypto users, representing roughly 2.2% of the population, according to 2024 estimates from Statista and the Bank of Italy. Adoption is concentrated among younger, tech-savvy individuals in Milan, Rome, and Turin. Institutional activity remains limited: only a handful of Italian banks, such as Banca Sella and Banca Generali, offer crypto custody or trading services to clients. In 2023, Banca Generali partnered with Conio to provide Bitcoin custody. Crypto ATMs number around 100, mostly in major cities. Use cases include remittances, with Italy being a major corridor for transfers to North Africa and Eastern Europe. Merchants accepting crypto are rare, though some online retailers and tourism businesses in Venice and Florence accept Bitcoin. The 2023 Bank of Italy survey found that 60% of Italians aware of crypto consider them risky, and only 8% had invested. The market is overshadowed by traditional investments, but growing inflation concerns have spurred interest.