Crypto in Italy

Italy regulates crypto assets through the Consolidated Law on Finance (TUF, Legislative Decree 58/1998) and the EU's Markets in Crypto-Assets Regulation (MiCA, Regulation 2023/1114), which became fully applicable on December 30, 2024. The Bank of Italy and CONSOB (Commissione Nazionale per le Società e la Borsa) share supervisory duties. The Bank of Italy oversees anti-money laundering (AML) compliance under Legislative Decree 231/2007, while CONSOB enforces market conduct and investor protection. In 2022, Italy established a mandatory registration regime for crypto service providers with the Organismo Agenti e Mediatori (OAM), requiring adherence to AML rules. MiCA now supersedes national licensing, introducing a unified passporting framework. Italy has not recognized crypto as legal tender, but it is legal to hold, trade, and mine. The Digital Euro, currently in ECB research phase, could further shape Italy's regulatory landscape, with the Bank of Italy actively participating in pilot programs.

Italy taxes cryptocurrency capital gains at a flat 26% rate for individuals, applicable when crypto is sold, exchanged, or used to purchase goods/services. This rate applies to gains exceeding €2,000 per tax year, a threshold introduced in the 2023 Budget Law (Law 197/2022). However, the 2025 Budget Law (Law 207/2024) proposed raising the rate to 42% for gains above €2,000, sparking controversy and industry backlash; the measure is under parliamentary review and may be amended. Losses can offset gains within the same tax year. Reporting obligations require taxpayers to declare crypto holdings in the RW section of the annual tax return, even if no gains are realized. For businesses, crypto gains are treated as ordinary income, taxed at the corporate rate (IRES 24% plus IRAP 3.9%). VAT does not apply to crypto trading, following the EU Court of Justice ruling in Hedqvist (C-264/14).

Italy has over 1.3 million crypto users, representing roughly 2.2% of the population, according to 2024 estimates from Chainalysis and Statista. Adoption is concentrated among younger, tech-savvy demographics in urban centers like Milan and Rome. Institutional interest is growing: several Italian banks, including Intesa Sanpaolo, have launched crypto custody and trading services for select clients. The Milan Stock Exchange (Borsa Italiana) has not listed crypto ETFs, but Italian investors can access foreign-listed products. Use cases include remittances, particularly to Eastern Europe and North Africa, and as a hedge against inflation. Merchant adoption remains low, with fewer than 1,000 businesses accepting crypto directly, though payment processors like Conio and Hype facilitate conversions. The NFT market has seen modest activity, with Italian artists and sports clubs (e.g., Juventus) issuing digital collectibles.