Taxing cryptocurrencies for not understanding them – In Europe, we are not just trying to do that to choke the sector of bitcoins and cryptocurrencies of excessively restrictive regulations, almost impossible to comply with without pharaonic expenditure in compliance. We tax also strongly crypto-enthusiasts. And for slow adoption of these decentralized competitors to future central bank digital currencies (MNBCs)? Anyway inside Italynow it will be 26% tax on capital gains.
Taxes come first, especially for Bitcoin and cryptocurrencies
Beyond the Alps, sad news will further complicate the adoption of cryptocurrencies in Europe. In the very last days of 2022, the Italian senate approved the state budget for 2023, including a fort tax increase for holders of bitcoin and other crypto-assets.
despite texts voted by the Italian senators finally give a definition to cryptocurrencies, this implies a daunting taxation. Bitcoin and similar are, in fact, recognized as:
“(…) a digital representation of value (…), which can be transferred and stored electronically, using distributed ledger technology (DLT) (…)”.
With 26% taxation, Italy comes close to French fiscal violence
According to the new rules approved on December 29, 2022, earnings will be taxed at 26% when they exceed €2,000 per fiscal year. This involves selling cryptocurrencies in euros (or currency Fiat). But also, unfortunately, the uses of cryptocurrencies for the purchase of goods and services.
In France, this capital gains taxation also reaches the 30%. Obviously, this severely limits interest use Bitcoin or other cryptocurrencies to make daily purchases. Especially for long-term owners, whose assets have soared in value against the euro and other fiat currencies.
After all, the Italian legislators are trying for the latter encourage them to declare their possessions in crypto-assets. Indeed, for 2023, those who agree to declare the value on 1um January of their cryptocurrencies will be taxed up to 14% on their digital resources.
With the settlement Not (Cryptocurrency markets) for which it is profiled inframing cryptocurrencies on a European scale in 2024 the sector is certainly undergoing severe tests. On both the side of investors and cryptocurrency companies, the time seems to have come for state legislation and regulations. Starting with taxation therefore.
The time has come for state tax interests in bitcoin. And you, what are you doing to prepare for the future? Get to know this exciting world and don’t wait any longer for yourself create an account on Binance. You will save 10% on trading fees by following this link (trading link).