Italy has proposed a crypto law bill that would allow the country to impose a 26% tax on cryptocurrency earnings above $2000. If approved, laws related to the crypto sector could come into force in the country in 2023.
Italy is drafting regulations for the crypto sector so that investors experimenting with the sector can take as many precautions as possible.
While cryptocurrencies are highly unregulated, governments around the world are working to tax profits generated from crypto activities, in order to keep some records of crypto transactions.
Once signed into law, the proposed bill would allow taxpayers to get some incentives by declaring their crypto holdings and paying a 14 percent tax, according to a Bloomberg report.
Research firm Triple-A estimates that more than 1.3 million, or 2.26% of Italy’s total population, currently own cryptocurrency.
Coinbase, the cryptocurrency exchange, received approval from Italy’s OAM to continue serving customers in Italy this month.
Earlier this year, Italy’s Ministry of Economic Development planned to invest $46 million in subsidies to develop projects around blockchain, artificial intelligence (AI), and the Internet of Things.