The Italian crypto market is currently facing a turbulent face the government in the nation might double down on its crypto taxes.
Reuters reported that Italy intends to raise approximately 68 million euros ($73.28 million) through stricter regulations for its domestic online tax and increased capital gains taxes on cryptocurrencies, citing Rome’s 2025 budget.
Italy imposed a 3% tax on online sales revenue in 2019 for digital businesses with at least 750 million euros in sales, with at least 5.5 million of those sales occurring in Italy.
However, in a move that is anticipated to generate an extra 51.6 million euros on top of the present revenue of 400 million, the budget eliminates these minimal requirements required for the tax to be applied.
The move stays in tandem with other players in Europe as well. Previously, Denmark has jumped on the same bandwagon, mulling to lay down taxes on unrealized crypto gains.
Italy Remains Top European Country In Terms Of Crypto Market
The new taxation laws might come at a time when Italy has been rejoicing in a top position in the global crypto world. This means, that there might be a slight chance that investors could slowly move away from investing in crypto in Italy.
Cryptocurrency adoption is booming in Italy, where Bitcoin is the most popular digital asset among Italian investors.
Central, Northern & Western Europe (CNWE) is the second-largest cryptocurrency economy globally, after North America, according to a recent Chainalysis report. Between July 2023 and June 2024, the region received $987.25 billion in value on-chain, representing 21.7% of all transactions globally. Italy was one among them.
In the previous year, CNWE’s DeFi activity was comparable to the global average. The region accounted for $270.5 billion of all cryptocurrency received in the region, outperforming North America, Eastern Asia, and MENA in terms of year-over-year increase.
The majority of CNWE’s DeFi growth was driven by decentralized exchanges (DEXes), but inflows into the majority of other DeFi service categories decreased in recent quarters.
Italy To See A Slight Dip In Crypto Adoption?
After being on the top for so long, Italy might see a slight dip in its crypto revenue in the future. According to a recent report by Statista, by the end of 2024, the Italian cryptocurrency sector is anticipated to generate US$1,247.0 million in revenue.
However, with a predicted total revenue of US$1,202.0 million by 2025, the annual growth rate (CAGR 2024-2025) of the nation might face a fall of -3.61%.
Additionally, it is projected that the cryptocurrency sector will generate an average of US$68.9 per user by 2024.
By 2025, it is anticipated that there will be 18.18 million individuals utilizing the cryptocurrency market in Italy.