A draft crypto legislation bill offered by Italy would allow the country to impose a 26 percent tax on crypto income over $2,000 if passed into law (roughly Rs. 1.62 lakh). The measure has not yet received the required number of endorsements from government agencies. If passed, the proposed crypto regulations could become law in the country as early as 2023. Italy, like many other countries, is working on cryptocurrency legislation to provide investors with as many safeguards as possible while they explore the industry.
Despite the fact that cryptocurrencies are currently unregulated, governments throughout the world are working towards taxation earnings generated from crypto activity.
According to a Bloomberg article, if the new legislation is enacted into law, taxpayers who disclose their cryptocurrency holdings and pay a 14 percent tax will be eligible for rewards.
There has been a documented uptick in the volume of crypto-related activities in Italy.
Triple-A believes that 2.26 percent of Italians, or over 1.3 million people, are bitcoin holders at the present time.
The Italian government's primary financial regulator, the Organismo Agenti e Mediatori (OAM), gave CryptoCom the green light to operate in the country back in July.
Coinbase, a cryptocurrency exchange, received authorization from Italy's OAM later that month.
Earlier this year, the Italian Ministry of Economic Development had intended to invest $46 million (approximately Rs. 364 crore) in subsidies for creating initiatives revolving around blockchain, Artificial Intelligence (AI), and the Internet of Things (IoT).
The MiCA regulations, which were recently adopted by the European Union and are slated to go into force around 2024 for all members of the union, may soon be in line for acceptance and implementation in the country.
The purpose of the MiCA law is to stop illegal activity including insider trading, illegally sharing confidential information, and manipulating the market for cryptocurrency.
Also, crypto profits in India are subject to a 30 percent tax, which is higher than in many other countries that regulate and tax the industry.
As opposed to other countries, the United States treats cryptocurrency as a form of property rather than money. According to reports, the Internal Revenue Service (IRS) of the United States levies a tax of 10%-20% on cryptocurrency transactions within the country, depending on the length of time the assets have been kept.
