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The Senate of Italy approved a new tax rate for cryptocurrency in the budget law for 2023.
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The Italian government will therefore apply a tax of 26% on the capital gains from cryptocurrency transactions for more than 2,000 euros.
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In the past, Italy used to treat crypto assets as a currency that was foreign with lower tax rates.
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The Italian government introduced the plan for an additional 26% tax on crypto in the early months of December 2022; however, the final approval came the last week.
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Presently, 2.3% of the total Italian population of 1.3 million have digital assets.
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Of them, 57 percent out of Italian cryptocurrency users are male , while 43% are female.
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The majority of cryptocurrency users in Italy are in the age group 28-38.
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The bill also mentions that taxpayers can declare their cryptocurrency assets on January 1 and could be subject to a 14% tax.
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The goal behind the incentives is to get more Italian to disclose their crypto assets.