Alerted by the recent sinking of several cryptocurrency companies, European countries such as Italy and before that Portugal have decided to increase government interventionism in a generally poorly regulated sector. For them, it is a question of putting measures in place to prevent the often disastrous consequences of the loss of assets that characterizes this constantly evolving market.
A measure to protect cryptocurrency investors and consumers
As announced a few weeks ago, the Italian Parliament validated, on Friday 30 December, the option in favor of taxing capital gains made on crypto transactions. Therefore, starting this year, the state has the right to apply a 26% levy whenever a crypto transaction generates a profit of more than 2,000 euros, or approximately $2,062.3.
The rule, similar to the one adopted by Portugal, is essentially targeted to limit the risks for the thousands of Italians who hold crypto, of losing their assets. This, in a context where the instability of this market has caused the sensational collapse of various companies in recent months. The situation has affected several investors and consumers who have found themselves ruined.
The country wants to play an active role in the market
Beyond the desire to safeguard the interests of the players in the crypto ecosystem, the Italian authorities above all want to strengthen state intervention in this booming sector. Until now, indeed, the influence of the state has been passive. This, while this poorly regulated market requires stricter operating rules. Such an environment will ensure an attractive added value for all stakeholders.
This new standard is seen as bad news for many investors. In fact, the latter have so far benefited from the absence of tax measures on crypto transactions. From now on, the State can, through this provision, activate a further lever to restore its coffers and support its economic policy.
To achieve this goal, Italy’s 2023 budget provides for 14%“a substitute tax on income”. This incentive will force investors to declare the crypto-asset accounts they hold on overseas platforms to the tax authorities.
Such means of pressure could also increase once the regulation of the cryptocurrency market is harmonized at the European Union level.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.