Cryptocurrency Regulations in Italy for 2025: A Comprehensive Guide to Laws, Taxes, and Compliance

Explore Italy’s 2025 cryptocurrency regulations, including laws, taxes, and compliance. Learn how these rules impact traders and investors, with tips to stay compliant.

The Regulatory Landscape for Cryptocurrency in Italy

Key Regulatory Developments

1. OAM Registration (2023 Onward): Since January 2023, all cryptocurrency exchanges and service providers operating in Italy must register with the OAM. This mandate fosters transparency and ensures compliance with AML and counter-terrorism financing (CFT) measures. Only registered firms can legally serve Italian customers, protecting investors from unregulated platforms.
2. MiCA Implementation (2024–2025): Italy is preparing for the EU’s MiCA regulation, which establishes a unified framework for crypto-assets across member states. MiCA will standardize licensing, consumer protections, and stablecoin regulations, with full implementation expected by late 2025. The Bank of Italy is aligning its guidelines with MiCA to ensure stability and innovation.
3. Anti-Money Laundering (AML) Compliance: Under Italy’s Legislative Decree No. 90 of 2017, crypto exchanges are treated similarly to traditional financial institutions. They must conduct Know Your Customer (KYC) checks, monitor transactions, and retain records for 10 years to prevent money laundering and terrorism financing.
4. Consumer Protection: The Italian financial watchdog, CONSOB, classifies certain crypto-assets as “Financial Products” under the Testo Unico della Finanza (TUF) if they meet criteria such as involving funds, promising returns, and carrying investment risk. This classification subjects them to investor protection rules, including transparency and risk disclosures.

• DAC-8 Directive (2026): The EU’s DAC-8 directive will extend tax transparency rules to crypto-assets, requiring exchanges to report user transactions to tax authorities. This will increase scrutiny for Italian traders and necessitate robust record-keeping.
• MiCA Stablecoin Rules: MiCA will introduce specific regulations for stablecoins, such as E-Money Tokens (EMT). The Italian Revenue Agency has noted that conversions to stablecoins like USDT are currently tax-neutral, pending further clarification under MiCA.

Cryptocurrency Taxation in Italy – Cryptocurrency Regulations

Capital Gains Tax

• Rate and Threshold: Crypto capital gains exceeding €2,000 in a tax year are taxed at 26%, classified as “miscellaneous income” (redditi diversi). From January 2026, this rate will increase to 33%, a reduction from an initially proposed 42% hike.
• Taxable Events: Taxable events include:
  • Selling crypto for fiat currency (e.g., EUR).
  • Trading crypto for other crypto-assets (e.g., BTC to ETH).
  • Using crypto to purchase goods or services.
  • Converting crypto to non-stablecoin assets (conversions to stablecoins like USDT are currently tax-neutral).
• Calculation Method: Gains are calculated as the difference between the sale price and the cost basis (purchase price plus fees). The Last In, First Out (LIFO) method is used to determine the cost basis for assets purchased at different times.
• Loss Deduction: Losses exceeding €2,000 can be deducted from profits and carried forward for up to five years, enabling tax-loss harvesting strategies.

Alternative Portfolio Tax

• Substitute Tax Option: Investors can opt for an 18% tax on the value of their crypto holdings as of January 1 each year, instead of the capital gains tax. This value becomes the new cost basis, but capital losses cannot be carried forward under this regime.
• Strategic Use: This option may benefit long-term holders who expect significant future gains, as it simplifies reporting and defers taxation.

Income Tax

• Mining, Staking, and NFTs: Income from mining, staking, or selling self-created NFTs is treated as general income, subject to progressive income tax rates (23%–43%, plus regional and municipal surcharges). However, specific guidance on staking and lending rewards remains unclear, with the 2023 Budget Law suggesting a 26% tax on such income without deductions.
• Professional Trading: If crypto trading qualifies as a professional activity (e.g., habitual and organized), it is subject to corporate income tax (IRES at 26% and IRAP at 3.9%) for businesses or progressive income tax for individuals.

Tax-Exempt Activities

• Purchasing crypto with fiat currency.
• Holding crypto without selling or trading.
• Transferring crypto between personal wallets.

Reporting Requirements

• Tax Forms: Crypto gains are reported via:
  • Modello Redditi PF: For capital gains and miscellaneous income, due by October 31.
  • Modello 730: For general income, due by September 30.
• RW Form: Crypto holdings must be reported in the RW section of the tax return for foreign asset monitoring, even if held in decentralized wallets.
• Advance Payments: Taxpayers must make two advance payments based on the previous year’s tax balance: 40% by June 30 and 60% by November 30.
• Record-Keeping: Investors must maintain detailed records of transactions, including dates, amounts, cost basis, and fees, to comply with potential audits. The lack of clear record-keeping guidelines increases the burden on taxpayers.

Voluntary Disclosure

• The 2023 Budget Law allows taxpayers to regularize unreported crypto holdings by paying a 3.5% substitute tax on the value of assets held, plus 0.5% per year for penalties and interest. This option is unavailable for assets tied to illegal activities.

Compliance Requirements for Crypto Exchanges and Investors

For Crypto Exchanges

• OAM Registration: Mandatory for all crypto service providers, ensuring compliance with AML/CFT regulations.
• KYC and Due Diligence: Exchanges must verify customer identities, monitor transactions, and report suspicious activities. This includes collecting data on customers’ professions, tax status, and fund sources.
• Data Protection: As data controllers under the EU General Data Protection Regulation (GDPR), exchanges must secure customers’ private keys and personal data, conducting Data Protection Impact Assessments.
• MiCA Compliance: By late 2025, exchanges must obtain MiCA licenses to operate in Italy, adhering to standardized EU rules on transparency, custody, and stablecoin issuance.

  

For Investors

• KYC Verification: Investors must provide photo ID and other documents to open exchange accounts, aligning with AML requirements.
• Tax Reporting: Self-assessment is required, with investors calculating gains and losses using the LIFO method and submitting accurate tax returns.
• Secure Storage: To mitigate exchange vulnerabilities, investors are encouraged to use hardware or software wallets for long-term storage, retaining control over private keys.

Impact on Italian Crypto Traders and Investors

Positive Impacts

1. Regulatory Clarity: The 2023 Budget Law and OAM registration provide a clear framework for taxation and compliance, reducing ambiguity compared to earlier years when crypto was treated as foreign currency.
2. Investor Protection: CONSOB’s oversight and AML measures protect retail investors from scams and unregulated platforms, fostering trust in the market.
3. EU Alignment: MiCA and DAC-8 will streamline cross-border operations, potentially attracting more crypto businesses to Italy and simplifying compliance for traders using EU-based exchanges.
4. Tax-Loss Harvesting: The ability to deduct losses and carry them forward for five years offers strategic tax-planning opportunities.
5. Banking Integration: Partnerships like Conio’s collaboration with Coinbase enable Italian banks (e.g., Unicredit, Banca Intesa Sanpaolo) to facilitate crypto transactions, improving accessibility.

Negative Impacts

1. High Tax Rates: The 26% capital gains tax (rising to 33% in 2026) is among the highest in Europe, potentially discouraging frequent trading and reducing profitability.
2. Complex Reporting: Self-assessment, LIFO calculations, and RW Form requirements are burdensome, especially for novice investors lacking accounting expertise.
3. Unclear Guidance: The lack of specific rules for staking, lending, and NFTs creates uncertainty, increasing the risk of non-compliance.
4. Increased Scrutiny: DAC-8 and OAM regulations will heighten monitoring, potentially deterring privacy-conscious investors who value crypto’s decentralized nature.
5. Exchange Risks: Mandatory KYC and centralized exchange reliance expose users to data breaches and platform vulnerabilities, as funds stored on exchanges are less secure than in personal wallets.

Market Sentiment

Strategies for Italian Crypto Traders and Investors

1. Use Tax Software: Tools like Blockpit automate gain/loss calculations and generate compliant reports, simplifying LIFO and RW Form submissions.
2. Leverage Loss Harvesting: Sell losing positions to offset gains, carrying forward excess losses to reduce future tax liabilities.
3. Opt for the Portfolio Tax: If you’re a long-term holder, the 18% substitute tax may be more cost-effective than the 33% capital gains tax.
4. Secure Your Assets: Transfer crypto to hardware wallets (e.g., Ledger, Trezor) to minimize exchange risks while retaining private key control.
5. Stay Informed: Monitor updates on MiCA, DAC-8, and Agenzia Entrate guidelines, as regulations are evolving rapidly. Consulting a crypto tax professional can ensure compliance.
6. Diversify Platforms: Use OAM-registered exchanges like Binance, Bitpanda, or Coinbase, and explore P2P platforms for flexibility, while remaining cautious of volatility and scams.

Navigating Italy’s Crypto Regulations in 2025

Disclaimer: Cryptocurrency investments carry high risks due to volatility. Tax regulations are complex and subject to change. Consult a tax professional or financial advisor before making investment or tax decisions.