Italy imposes a crypto tax of 26%.

Italy’s new crypto tax is set to impose a capital gains tax of 26% on traders.

A tax on crypto traders is set to go into effect next year, Coindesk reported on Friday (December 30). The report says the tax is part of Italy’s new budget, which defines crypto assets as “a digital representation of value or rights, which can be transferred and stored electronically, using distributed ledger technology or similar technology.”

The budget, passed on Thursday (December 29th), contains $22.3 billion in tax breaks to help businesses and households facing Europe’s energy crisis, Reuters reported.

The tax rate applies to crypto trading profits of more than €2,000 ($2,145) per tax period. The law also creates a “replacement income tax” for investors of 14% of the value of assets they hold from January 1 next year, instead of the cost at the time of purchase, Coindesk reports.

The new regulations also allow investors to deduct crypto investment losses from profits and pass them on.

The adoption comes just over a week after reports that the Italian government is backing a plan to reduce digital payment fees for merchants.

The measure, part of the new budget, would require a “solidarity contribution” from banks and payment processors to reduce digital payments fees for merchants.

“We intend to lift the point-of-sale measure,” Italian Economy Minister Giancarlo Giorgetti said during a recent budget debate.

He added that instead, some sort of countervailing measures could be created to help merchants with card fees.

Meanwhile, PYMNTS reported on Friday efforts by the United Kingdom and the European Union (EU) to adopt and amend their regulations governing crypto assets next year.

This autumn saw a series of amendments to the UK’s Financial Services and Markets Act (FSMB) to ensure that the law brings crypto assets under the regulatory scope of the Financial Conduct Authority (FCA).

“Accordingly, the FSMB requires comparison with the EU Regulation on Markets in Crypto Assets (MiCA), which is also slated for adoption in 2023 after a delay in the vote originally scheduled for December,” PYMNTS wrote.

In a summary of the various rules and regulations, the UK economy secretary at the Treasury, Richard Fuller, noted that “the UK approach to much to do with financial services is to have an agile system that relies heavily on regulators writing their rules as things are brought within the regulatory scope.”

Separating this from the EU’s “more legalistic approach”, during a discussion on cryptocurrency regulation, Fuller said, “in the UK we trust regulators to work quickly and efficiently to write the regulations that are right at the time.”

For all PYMNTS EMEA and crypto coverage, subscribe to the daily newsletter EMEA and Crypto newsletters.

PYMNTS data: Why consumers are trying digital wallets

A PYMNTS study, “New Payment Options: Why Consumers Are Trying Digital Wallets,” reveals that 52% of US consumers tried a new payment method in 2022, with many choosing to try digital wallets for the first time.

Leave a Comment

Your email address will not be published. Required fields are marked *