Share this article
Italy Wants to Tax Speculative Bitcoin Use
New documents show bitcoin is being treated as a form of currency by Italy's tax top office.
By Stan Higgins
Updated Sep 11, 2021, 12:29 p.m. Published Sep 8, 2016, 12:31 p.m.
New documents suggest Italy's top tax office is treating bitcoin as a form of currency.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
, Italy's top tax authority, released new information this month about its treatment of digital currencies, a publication that comes months after an EU court ruling regarding how value-added tax (VAT) would apply to transactions executed using the technology.
According to the Agenzia della Entrate, purchases and sales made with bitcoin remain exempt from VAT – a decision that mirrors a decision by the European Court of Justice (ECJ) last October. However, Italian tax officials, the documents show, are applying income tax to speculative uses of bitcoin, or events in which money is made during a sale or purchase.
The agency published the ruling in response to a request by a business in Italy, the name of which wasn't disclosed. Those buying bitcoins outside of the scope of speculative activity, it indicates, aren't required to pay income tax.
In doing so, the Agenzia Entrate appears to be treating bitcoin as a form of currency, a move that is the latest turn regarding bitcoin taxation worldwide.
While the ruling largely brings Italy in line with the decision set by the ECJ, it further highlights the disparity between Europe and countries like the US, which taxes bitcoin as a form of property.
Imperfect ruling?
At least one analyst reported there are issues with how the Agenzia della Entrate crafted its ruling, however.
Italy-based CPA and tax advisor Stefano Capaccioli, who has written about the issue on his blog, said that the ruling creates a new layer of uncertainty for businesses working with the digital currency.
Specifically, while the agency is looking to tax bitcoin as a form of currency, Italian law itself doesn't recognize it as such. Further, he said that accounting standards in place today in Italy are also in conflict with the Agenzia Entrate’s position on bitcoin.
"It could generate more problems than solutions," he told CoinDesk.
Italian tax form via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Lighter trading platform sees $250 million withdrawn 24 hours after airdrop
Bubblemaps CEO says outflows seen on Lighter on Dec. 31 are not uncommon as users rebalance hedging positions and move on to the next farming opportunity.
What to know:
- Approximately $250 million was withdrawn from Lighter after its $675 million LIT token airdrop.
- The withdrawals represent about 20% of Lighter's total value locked, according to Bubblemaps CEO Nicolas Vaiman.
- Large withdrawals post-token generation events are common as early participants exit, says CertiK's Natalie Newson.
Top Stories
