Crypto Regulation In Italy | Laws, Taxes & Compliance

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

Crypto is regulated in Italy under both EU-level and national laws. The primary framework is the Markets in Crypto-Assets (MiCA) Regulation, introduced in 2023, which provides unified licensing, supervision, and conduct rules for crypto service providers. Italy also enforces its own tax laws, including a 26% capital gains tax on crypto profits, which is set to rise to 33% from 2025, along with mandatory registration and disclosure rules for individuals and companies dealing with digital assets.

Cryptocurrency regulation in Italy is evolving in line with European and national regulations. In 2023, the MiCA (Markets in Crypto-Assets) regulation came into force, establishing uniform rules for crypto assets in EU countries, including Italy. National laws complement these requirements, defining the licensing, control and taxation of digital asset transactions.

Risk warning: Cryptocurrency markets are highly volatile, with sharp price swings and regulatory uncertainties. Research indicates that 75-90% of traders face losses. Only invest discretionary funds and consult an experienced financial advisor.

How is cryptocurrency regulated in Italy?

Cryptocurrencies in Italy are regulated by the European MiCA regulation and national laws. Companies and investors must take into account the current regulations in order to comply with regulators' requirements and avoid possible sanctions. The state sets rules aimed at increasing market transparency and integrating digital assets into the financial system.

Main legislative acts regulating crypto assets

Regulation (EU) 2023/1114 – MiCA

Implements the EU Markets in Crypto‑Assets framework. Sets unified rules on issuance, trading, stablecoins (ARTs/EMTs), licensing for service providers, investor protection, market conduct, and supervision across member states.

Legislative Decree No. 129/2024 (MiCA Decree)

Transposes MiCA into Italian law. Clarifies roles of Consob and Bank of Italy, mandates licensing for crypto‑asset service providers (CASPs), enforces asset segregation, crisis regimes, AML/KYC compliance, and white‑paper/public disclosure rules.

Legislative Decree 231/2007 (AML Decree)

Introduced AML regulations under EU AMLD5. Requires Virtual Asset Service Providers (VASPs) to register with OAM, perform KYC/AML, and report quarterly. This remains active alongside MiCA.

Additional relevant regulations

Legislative Decree No. 95/2025 & Decree 1/2025. Fine-tunes MiCA implementation, clarifies transitional rules for existing VASPs until December 2025/June 2026.
Legislative Decree No. 204/2024 – Transfer of Funds Regulation. Enhances traceability of crypto transactions, imposing stricter record-keeping on CASPs to help combat money laundering and illicit finance.
2023 & 2025 Budget Laws – Taxation. Establishes a 26% capital gains tax (rising to 33% from 2026) on crypto disposals. Also allows an alternative flat 18% wealth tax on holdings and removes the €2,000 exemption threshold starting in 2025.

Supervisory authorities and their functions

Banca d’Italia (Central Bank of Italy). Responsible for prudential supervision and crisis management of issuers of asset-linked tokens, electronic money tokens and service providers for crypto assets. It also oversees the transparency and protection of holders of electronic money tokens.
CONSOB (National Commission for Companies and the Stock Exchange). Responsible for overseeing transparency, correctness of market participants’ behavior and the protection of investors in the crypto assets sector. It also regulates operations on crypto asset trading platforms and prevents market abuse.

Requirements for crypto companies and exchanges

Crypto service providers operating in Italy must register with the OAM (Organismo Agenti e Mediatori). This is a mandatory requirement for entities offering crypto custody, exchange, and related services. The registration ensures that firms are identifiable, supervised, and accountable.

Companies must fulfill compliance obligations including:

KYC (Know Your Customer) procedures.
Adherence to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) rules.
Providing users with clear, accurate, and non-misleading information about their products and services.

Firms are also required to maintain sufficient capital and risk management structures in line with requirements.

Crypto taxes in Italy: What you need to know

Tax obligations for individual investors and traders

In Italy, individual investors and traders are subject to a 26% capital gains tax on profits from cryptocurrency transactions, including selling, swapping, or using crypto to purchase goods and services. As of 2025, the €2,000 exemption on gains has been removed, meaning all profits are now taxable. Investors may alternatively opt into an 18% substitute tax on the total value of their holdings as of January 1 each year, although this option restricts the ability to offset losses.

Additionally, a 0.2% wealth tax applies to crypto held outside of regulated Italian institutions or in private wallets, while holdings through local platforms incur a similar stamp duty. These taxes must be reported annually, with detailed records maintained using the LIFO (last-in, first-out) accounting method.

To remain compliant, investors must report crypto-related income as “miscellaneous income” in the annual tax return, typically submitted by October 15. Furthermore, the RW form must be completed to declare the existence of any digital assets, regardless of whether tax is due. Failure to declare such assets can result in penalties ranging from 0.5% to 15% of the undeclared value, along with possible interest charges and audit investigations. Overall, Italian regulation emphasizes transparency, documentation, and timely reporting, making it essential for crypto investors to understand and follow all applicable tax obligations.

Taxation for companies and crypto exchanges

Italian crypto businesses are subject to the same regulatory and tax expectations as traditional financial entities. Below is a structured overview with proper capitalization and formatting.

Corporate income tax

Corporate income tax (IRES) is 24%.
Net income from crypto services such as trading fees, token sales, staking, or mining is fully taxable.
If the business is structured as a sole proprietorship or partnership, progressive income tax rates apply from 23% to 43%, plus regional levies and social contributions.

Registration and licensing

All virtual asset service providers (VASPs) must register with the Organismo degli Agenti e dei Mediatori (OAM).
This includes crypto exchanges, custodians, and platforms serving Italian clients.

AML and compliance requirements

Businesses must follow Know Your Customer (KYC) protocols.
They are required to monitor user activity, assess transaction risks, and report any suspicious operations in line with AML laws.

Tax reporting responsibilities

All revenue from crypto operations must be declared in corporate tax returns.
Beginning in 2026, the DAC8 framework will require VASPs to report user data and cross-border transactions directly to tax authorities.

Tax Rules for Businesses and Digital Asset Platforms

This regulatory landscape underscores Italy’s focus on financial integrity, ensuring crypto firms are fully aligned with traditional regulatory norms.

Penalties and sanctions for tax evasion

Failure to properly declare cryptocurrency holdings or gains can lead to severe consequences. Penalties can range from 120% to 280% of the tax owed, in addition to interest charges.

Late payments are penalized based on the delay duration:

If paid within 14 days, a reduced penalty applies with minor interest.
Payments delayed between 15 and 90 days may face penalties of up to 15%.
Delays beyond 90 days can result in penalties reaching 30% of the unpaid tax.

How to stay compliant with crypto regulations in Italy

Compliance with Italy's crypto regulations is essential for both individuals and businesses involved in cryptocurrency activities. Adhering to legal requirements ensures the legitimacy of operations and minimizes potential risks.

Register with the tax system

To operate legally in Italy, individuals and entities must obtain a tax identification number (Codice Fiscale). This unique code is necessary for all fiscal activities and can be obtained through the Italian Revenue Agency (Agenzia delle Entrate).

For businesses, registering for a VAT number (Partita IVA) is mandatory. This process involves submitting the required documentation to the Agenzia delle Entrate, either in person or online.

Use best practices for legal compliance

Adopting best practices is crucial for maintaining compliance with Italian crypto regulations:

Implement AML/KYC procedures. Establish robust Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols to verify client identities and monitor transactions.
Maintain accurate records. Keep detailed and up-to-date records of all cryptocurrency transactions, including dates, amounts, and counterparties.
Report holdings and gains. Ensure all crypto holdings and capital gains are accurately reported in annual tax declarations.
Consult professionals. Engage with legal and tax professionals experienced in cryptocurrency regulations to navigate complex compliance requirements effectively.

Utilize useful resources and official sources

Utilizing official resources enhances understanding and adherence to regulations:

Agenzia delle Entrate. The Italian Revenue Agency provides guidelines on tax obligations related to cryptocurrencies.
CONSOB. The National Commission for Companies and the Stock Exchange oversees financial markets and offers insights into regulatory compliance.
Banca d’Italia. The central bank provides information on financial stability and regulatory frameworks affecting cryptocurrency activities.

By following these steps and utilizing available resources, individuals and businesses can ensure compliance with Italy's cryptocurrency regulations, fostering a secure and lawful operational environment.

As an additional resource for individuals, we have compiled a list of top crypto exchanges in Italy for beginners. If interested, you can compare them using the table below and choose the best one for yourself.

Best crypto exchanges in Italy
	Kraken	Bybit.eu	OKX	MEXC	Bitget
Demo
Min. Deposit, $	10	1	10	1	10 EUR
Coins Supported	278	415	329	2276	831
Spot Taker fee, %	0.4	0.1	0.1	0.05	0.1
Spot Maker Fee, %	0.25	0.1	0.08	0	0.1
Alerts
Copy trading
Tier-1 regulation
TU overall score	9.2	9.2	8.9	8.7	8.6
Open an account	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.

Avoiding crypto tax red flags

Most beginners overlook a quiet tax trap. Token forks and chain splits can show up in your wallet without warning. Imagine waking up to a stash of free tokens you never purchased. In Italy, even if you didn’t ask for them, tax authorities may still expect you to log them as income. The trick is to treat them as zero-cost assets, and back it up with evidence. Keep screenshots, timestamps, and wallet logs. This is not about gaming the rules. It is about showing clear, documented reasoning in case your filings are questioned later. That one step can save you from hours of stress during an audit.

Another area that trips people up is staking through smart contracts that rebalance or auto-compound. Even if you never sold or moved money, changes in wallet balances might be treated as taxable events. Many traders assume if nothing was withdrawn, there is no tax. But regulators see smart contract interactions differently. The fix is to track everything with a reliable wallet analytics tool. After that, write a short, plain-language explanation of what happened. Think of it like narrating your DeFi activity to someone who has never used crypto. A clear explanation builds trust and prevents costly misinterpretations.

Conclusion

In conclusion, Italy's evolving regulatory landscape for cryptocurrencies reflects a determined effort to balance innovation with transparency and investor protection. With the implementation of rigorous tax policies and adherence to advancing EU directives, both individual investors and companies must stay vigilant and proactive in their compliance efforts. For example, clear guidelines on capital gains taxes and mandatory reporting signal that authorities are prioritizing accountability in this dynamic market. Ultimately, as Italy continues to refine its approach, embracing regulation will not only foster trust but also pave the way for sustainable growth in the crypto sector.

FAQs

How does the MiCA Regulation affect day-to-day operations for crypto service providers in Italy?

Under the MiCA Regulation, crypto service providers in Italy must obtain unified licensing, adhere to conduct rules on investor protection, and comply with ongoing supervision. This impacts daily operations by imposing requirements for clear disclosures, asset segregation, anti-money laundering procedures, and detailed record-keeping, as well as mandatory registration with regulatory authorities.

What are the consequences for late or inaccurate tax reporting on crypto assets in Italy?

Late or inaccurate tax reporting on crypto assets in Italy can result in penalties ranging from 120% to 280% of the tax owed, plus interest charges. The severity increases with the length of the delay and extent of reporting errors, and can include additional sanctions such as audit investigations for failure to declare holdings or gains.

Do Italian crypto regulations apply to both individuals and businesses engaging in DeFi activities?

Yes, Italian crypto regulations apply to both individuals and businesses involved in DeFi (Decentralized Finance) activities. Both are required to track and report any income or changes in crypto asset balances arising from smart contract interactions or staking, ensuring compliance with tax and anti-money laundering requirements.

What accounting methods are required for tracking cryptocurrency transactions for tax purposes in Italy?

For tax purposes in Italy, the LIFO (last-in, first-out) accounting method must be used to track cryptocurrency transactions. This method determines which crypto assets are considered sold first, affecting the calculation of capital gains or losses to be reported in annual tax returns.

Did you like the article?

Editors' Top Picks and Insights

11 hours ago Mikhail Vnuchkov

Bitcoin price prediction and Bollinger Bands: Can BTC recover after falling to $63,000?

#Crypto #Prediction #Bitcoin

1 day ago Oleg Tkachenko

FIFA World Cup on blockchain: Where football meets crypto

#Crypto #Avalanche

2 days ago Pavlo Kot

Aliens, Satoshi, and Bitcoin: How the extraterrestrial theory emerged

#Crypto #Bitcoin

3 days ago Pavlo Kot

Blockchain nation in crisis: How a power struggle split Liberland

#Crypto #Justin Sun

4 days ago Eugene Komchuk

Shifting priorities: Governments back mining as businesses turn to AI

#Crypto #Bitcoin

5 days ago Mikhail Vnuchkov

Intel's comeback: Apple, Trump and the AI bet

#Apple #Intel

All news

Team that worked on the article

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income.

Learn about our editorial policies

Dan Blystone began his trading career in 1998 as an arbitrage clerk on the floor of the Chicago Mercantile Exchange (CME). He later traded bond and Eurex futures at proprietary firms such as Altea Trading, gaining valuable experience in high-frequency trading and risk management.

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.

Top 5 companies for you