RESEARCH: Italy Cryptocurrency and Digital Asset Status Regulatory Requirements

Executive Summary

Cryptocurrency is now legal and fully regulated in Italy as of 2026, marking a decisive shift from a previous gray area. The Italian government has established a comprehensive regulatory framework under the Markets in Crypto-Assets Regulation (MiCA) and local decrees, overseen by the Autorità per le Garanzie nelle Comunicazioni (AGCOM) and the Banca d'Italia. Entities providing crypto services must obtain a Crypto-Asset Service Provider (CASP) license if they fall within the scope of MiCA, subject to capital adequacy and structural requirements. The practical reality is that several licensed entities operate, and compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) obligations is mandatory. Tax treatment remains under discussion, with no definitive guidance yet on gains taxation, leaving a notable gap in the regulatory landscape.

Regulatory Framework

Regulatory Bodies

• Autorità per le Garanzie nelle Comunicazioni (AGCOM): Regulates digital services and crypto-assets in Italy. Website: AGCOM
• Banca d'Italia: Oversees financial stability and implements AML/CFT measures for crypto assets. Website: Banca d'Italia

Primary Laws

• Regulation (EU) 2020/803 (MiCA): Establishes a harmonized regulatory framework for crypto-assets across the EU, effective from July 2024. Italy transposed MiCA into national law via Legislative Decree No. 92/2023. MiCA Regulation
• Decreto Legge 62/2023: Implements MiCA provisions in Italy, detailing licensing and compliance obligations for crypto-asset service providers. Decreto Legge 62/2023
• Legislative Decree 231/2007: Provides a legal basis for administrative liability and internal control systems for financial institutions, extended to crypto-asset service providers. Legislative Decree 231/2007

International Standing

• FATF Membership: Italy is a member of the Financial Action Task Force (FATF), aligning its crypto-regulatory stance with international standards. FATF Membership

Licensing Requirements

Entities Requiring License

• Crypto-Asset Service Providers (CASP) offering services such as exchange, custodial services, and issuance of crypto-assets are required to obtain a CASP license under MiCA. MiCA Regulation

Capital Requirements

• Minimum Capital: The Banca d'Italia mandates a minimum capital of €10 million for CASP license applicants, ensuring financial stability. Banca d'Italia

Application Process

1. Submit an application to the Banca d'Italia including business plan, risk management framework, and internal control systems.
2. Pass a due diligence review by AGCOM assessing compliance with AML/CFT standards.
3. Obtain approval from the Banca d'Italia within 120 days post-submission, subject to ongoing compliance. Decreto Legge 62/2023

Timeline and Structural Requirements

• Timeline: The application process typically takes 3-6 months, depending on the completeness of the submission.
• Structural Requirements: Applicants must demonstrate segregated client funds, robust cybersecurity measures, and qualified personnel with expertise in crypto-assets. AGCOM

Licensed Entities

• Examples: As of 2025, several entities such as Bitstamp Italia and Coinbase Italia have obtained CASP licenses, operating within the defined regulatory boundaries. Freeman Law

AML/KYC Requirements

• Customer Due Diligence (CDD): Mandatory for all clients, requiring verification of identity, address, and source of wealth. Crypto Regulation in Italy
• Enhanced Due Diligence (EDD): Required for high-risk clients, including politically exposed persons (PEPs). Sanction Scanner
• Suspicious Transaction Reporting (STR): Providers must report any suspicious transactions to the Banca d'Italia within 5 days. Sanction Scanner
• Record Retention: Maintain customer records for at least five years post-transaction. Freeman Law
• Beneficial Ownership Disclosure: Entities must disclose beneficial ownership information to the authorities. CMS Law

Enforcement Actions

• Fines and Penalties: Non-compliance with AML/CFT obligations can result in fines up to €10 million or imprisonment for up to 5 years. Banca d'Italia
• Case Example: In 2024, a non-compliant crypto exchange faced a €5 million fine for failing to implement adequate AML measures. Crypto Regulation in Italy

Tax Treatment

• Tax on Gains: As of 2025, the Italian tax authority (Agenzia delle Entrate) has not issued specific guidance on the taxation of crypto gains. The default treatment under Article 23-bis of the Income Tax Law is applied, taxing gains as income from other sources. Agenzia delle Entrate
• Capital Gains Tax Rate: Subject to the standard income tax rates, ranging from 23% to 43% depending on the taxpayer's income bracket. Agenzia delle Entrate
• VAT Treatment: Crypto-to-fiat transactions are subject to a 22% VAT, while crypto-to-crypto exchanges are exempt. Agenzia delle Entrate

Key Gaps & Risks

• Regulatory Gaps: The absence of explicit guidance on crypto gains taxation and the evolving nature of international standards pose significant risks.
• Operational Risks: Compliance with stringent AML/KYC requirements and capital adequacy thresholds demands substantial operational resources.
• Market Risks: Rapid market volatility and potential regulatory changes require continuous monitoring and adaptability. Digital Assets Risks, Regulations, Mitigation

Sources

• Digital assets: risks, regulations, mitigation - PMC - NIH -- https://pmc.ncbi.nlm.nih.gov/articles/PMC12883517/
• Crypto Regulation in Italy: 2026 Update -- https://vlolawfirm.com/trackers/crypto-regulation-italy
• Is Crypto Legal in Italy? Regulations & Compliance in 2026 -- https://www.lightspark.com/knowledge/is-crypto-legal-in-italy
• Italy - Cryptocurrency Laws and Regulation -- https://freemanlaw.com/cryptocurrency/italy-and-cryptocurrency/
• DAC8 Crypto Reporting in Italy: 2026 Rules -- https://www.itataxadvisor.com/dac8-crypto-reporting-rules-2026-italy-eu/
• Expert Guide on Crypto Regulation in Italy by CMS -- https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/italy
• MiCA Regulation and CASP License Guide: Italy & ... -- https://arnonesicomo.com/news/583/mica-regulation-casp-license-italy-luxembourg
• IT - Italy Blockchain Compliance 2025 -- https://opencomplianceproject.org/country/italy
• Cryptocurrency Regulations in Italy -- https://www.sanctionscanner.com/blog/cryptocurrency-regulations-in-italy-1176