Italy plans to tighten regulations on cryptocurrencies by taxing capital gains from 2023. According to the European country’s proposed budget for next year, all digital currency profits over £2,000 will be subject to a 26% tax.
The provision also declared that Italian investors who declared holdings of digital assets by 2023 would enjoy a low tax rate of 14%. Prime Minister Giorgia Meloni believes lowering the rate will encourage more citizens to declare their crypto holdings.
New Law Helps Increase Transparency, Strengthen Regulation
The proposed law would not only tax cryptocurrency profits, but would also feature digital asset stamp duty and disclosure obligations.
The new bill is in its early stages and may be amended at any time, but lawmakers are aiming to increase transparency and transparency requirements to build better regulation of digital assets.
According to data, about 2.3% of the Italian population (about 1.3 million people) hold some kind of cryptocurrency.
Nevertheless, financial watchdogs around the world are still experimenting with different ways to tighten crypto regulation.
For example, Italy’s new bill follows Portugal’s plan to impose a 28% tax on short-term cryptocurrency profits. In fact, Portugal has established itself as one of Europe’s most crypto-friendly countries.
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