Italy Embraces Blockchain for Government Workflows, Updates Crypto Tax Regulations
Italy is increasingly integrating blockchain technology into its public administration, as evidenced by recent updates to its public calls section. Simultaneously, the nation is refining its approach to cryptocurrency taxation, with changes taking effect in 2026. These developments signal a growing acceptance of digital assets and distributed ledger technology within the Italian government.
Blockchain Adoption in the Public Sector
The Italian Revenue Agency’s adoption of blockchain for its public calls section demonstrates a practical application of the technology within a governmental context. This move highlights a broader trend of blockchain entering routine government workflows, potentially enhancing transparency and security in public procurement processes. Whereas specific details regarding the implementation remain limited, the initiative suggests a commitment to exploring the benefits of blockchain beyond theoretical applications.
Changes to Cryptocurrency Taxation
Italy has implemented significant changes to its cryptocurrency tax regulations. Effective January 1, 2026, the substitute tax on crypto gains has increased to 33%.1 This adjustment reflects a broader effort to regulate and monetize the growing cryptocurrency market within the country.
Understanding the Italian Crypto Tax Landscape
Here’s a breakdown of how cryptocurrency is taxed in Italy:
- Capital Gains (over €2,000): 26%
- Substitute Value Tax: Elective 14% on declared crypto portfolio value as of January 1st.
- Ordinary Income (mining, staking, salary): Progressive IRPEF rates ranging from 23–43%.
- Companies: 24% IRES plus 3.9% IRAP on crypto profits.
- Wealth Tax (IVAFE) on foreign-held wallets: 0.2% of market value, due with annual return.
Taxable Crypto Transactions
Several types of cryptocurrency transactions are subject to taxation in Italy:
- Selling or Converting Crypto for Fiat: Disposing of cryptocurrency for euros or another fiat currency triggers capital gains or losses.
- Using Crypto for Purchases: Spending crypto to buy goods or services is treated as a disposal event, resulting in taxable gains or losses.
- Crypto-to-Crypto Trades: Exchanging one cryptocurrency for another is generally a taxable event, with gains or losses calculated in euros.
Key Deadlines and Reporting
Taxpayers in Italy must file their crypto tax returns by November 30th.2 The Agenzia delle Entrate (Italian Revenue Agency) requires reporting of foreign assets, including cryptocurrency holdings. EU directives like DAC8 are expanding the automatic sharing of crypto transaction data with tax authorities, emphasizing the importance of compliance.
Looking Ahead
Italy’s adoption of blockchain technology and its evolving cryptocurrency tax regulations demonstrate a proactive approach to the digital economy. As blockchain continues to mature and cryptocurrency gains wider acceptance, further adjustments to these policies are likely, aiming to balance innovation with regulatory oversight.
- TokenTax. “Guide to Crypto Taxes in Italy for 2026.”
- Kryptos.io. “How to File Crypto Tax in Italy (2026 Complete Guide).”