The adaption of crypto has been a priority for the elected government in Italy.
The Italian government has yet to decide what is the definition of Cryptocurrencies. Therefore commentators have debated whether cryptocurrencies should be regarded as currency ot goods from legal standpoint.
ICO are not regulated in Italy. However, the Italian Financial Markets watchdog (CONSOB) has been trying to assess their possible impact on retail investors over the past few years, yet to be successful on the matter.
Taxes and Regulation
Although the legal system in Italy does not define a definition of cryptocurrencies, a statutory definition of “virtual currencies” has been included in Legislative Decree no 90 of 2017, which means crypto is not a legal tender but it is a used as means of exchange for the purchase of goods or services or for means of investment, Individuals need to declare if they have crypto held in a foreign bank accounts and what they have in e-wallets. As well as individuals, corporates and small companies need to keep track of it in their tax repot each tax season. The capital gain must be declared in the RT framework of the income model PF, paying a substitute tax of 26%. Holding of cryptocurrencies, at any rate, should be declared in the RW framework of the “modello UNICO”.