Italy Considers 26% Tax on Cryptocurrency Profits As Binance and Gemini Open Shop

Italy seems to be the last European country to take advantage of crypto companies moving to the region and plans to tax digital commerce.

In the proposal included in the country's budget for 2023, a 26% tax will be levied on capital gains of more than $2,000 ($2,062) from cryptocurrency trading.

Previously, the Italian tax system treated cryptocurrency in the same way as a foreign currency.

This happened after several global crypto companies gave priority to expansion in Europe this year.

Bitpanda recently received an operating license in Germany, adding to the list of places where it is registered, which includes Italy.

At the same time, Binance has registered as a digital asset provider in France, Italy and Spain.

Gemini added five countries to its European presence last month, announcing yesterday that it had also received regulatory approval in Italy and Greece.

Portugal has already announced a similar 28% tax on profits from the sale of digital assets held for less than a year, although cryptocurrencies that are held for a long time may be exempt from taxation.

Part of the Italian government's plans will allow investors in cryptocurrency to declare their property from January 1, 2022, receiving a 14% lower rate.

Cryptonalogs around the World

Different jurisdictions have proposed different ways to tax cryptocurrencies and NFT, as they balance the desire to promote innovation and prevent investors from evading tax authorities.

At the beginning of 2022, the British tax authorities confiscated the interchangeable tokens for the first time as part of a tax fraud investigation and stated that they served as a warning to anyone who "believed that he could use crypto assets to hide money from HMRC [Her Majesty's Revenue and Customs].”

Recently, Costa Rica proposed to abolish almost all taxes on bitcoin in an attempt to attract foreign investors and technology companies.

Elsewhere, India's tax on all crypto transactions, which was introduced in the summer, prompted many local companies to leave the country.

In the United States, recent tax guidelines indicate that taxpayers should pay capital gains tax when disposing of any digital asset, since all interchangeable tokens, cryptocurrencies and stable coins fall into the same category.