Yes, buying cryptocurrency is legal in Italy, but subject to stringent anti-money laundering (AML) and counter-terrorism financing (CTF) oversight. The Italian government classifies crypto as “digital assets” under Legislative Decree 90/2017, aligning with EU’s Fifth Anti-Money Laundering Directive (5AMLD). Exchanges must register with the Organismo Agenti e Mediatori (OAM) and comply with 2026 EU-wide MiCA regulations, which introduce stricter operational and disclosure requirements for issuers and service providers.
Key Regulations for Buying Crypto in Italy
- AML/CTF Compliance: All crypto exchanges and wallet providers must implement know-your-customer (KYC) procedures under Decree 90/2017, enforced by the Guardia di Finanza and Banca d’Italia. Transactions exceeding €1,000 require identity verification.
- Taxation Framework: Capital gains from crypto sales are taxable under Italy’s Imposta sul Reddito delle Persone Fisiche (IRPEF) at progressive rates (23–43%), with losses deductible. The Agenzia delle Entrate mandates annual reporting via the Quadro RW tax form for holdings exceeding €10,000.
- MiCA Transition (2026): By December 2026, Italian firms must adapt to the EU’s Markets in Crypto-Assets Regulation (MiCA), which standardizes licensing, consumer protection, and reserve asset requirements for stablecoins and utility tokens.
Failure to comply risks fines up to €50,000 or criminal liability under Decreto Legislativo 231/2007 for illicit financial activities. Italian courts have upheld crypto’s legal status in disputes, but regulatory ambiguity persists for decentralized finance (DeFi) platforms.