As of January 2025, the MiCA regulation in the EU aims to create a clear framework for the cryptocurrency industry. However, Italy’s recent decision to raise its crypto capital gains tax from 26% to 42% raises concerns about its impact on local talent and innovation.
Uldis Teraudklans, Paybis’s Chief Revenue Officer, warns that HIGH tax rates may drive investors and companies to relocate to more favorable jurisdictions. Countries like Singapore and El Salvador, with low or no crypto taxes, serve as alternatives that could attract talent and investment.
While MiCA sets out to standardize the regulatory framework for cryptocurrencies in Europe, experts believe it struggles with the diverse economic realities of member states. Balancing fair taxation with an environment conducive to innovation will be crucial for Italy and the broader EU.