Italy to tax crypto gains from 2023, UK to thrust ahead with crypto-hub plans despite FTX collapse

Italy is set to bring taxation to digital assets following in the footsteps of other countries such as Portugal. The downfall of the crypto market that began after FTX’s collapse put digital assets at the front and center of governments’ concerns. Regardless, the United Kingdom intends to move forward with its agenda to become a crypto hub.

Italy to tax crypto traders

Italy recently announced a provision in the country’s proposed budget for 2023, which will extend the capital gains tax to crypto trading profits as well. The 26% tax will be levied on digital assets gains higher than 2,000 euros. 

In addition, Italian Prime Minister Giorgia Meloni’s government put forward a new bill. The draft law will give taxpayers an option to declare their digital asset holdings in their tax returns. This would result in the citizens paying a 14% tax on the value of assets held by them as of January 1, 2023. The proposal also includes disclosure obligations and extends stamp duty to crypto assets.

United Kingdom focuses on becoming a crypto hub

Following FTX’s collapse, a lot of countries changed their optimistic stance about crypto into scrutiny. However, the United Kingdom will not be taking a step back despite fears of contagion across crypto companies. The UK Economic Secretary, Andrew Griffith, stated that the country would not change its course and would continue building on its crypto plans. At TheCityUK’s National Conference, Griffith said,

“We’re driving forward this agenda, and I continue to chair the crypto-engagement group to hear from industry and share progress. The Financial Services and Markets Bill already enables us to establish a framework for regulating crypto assets and stablecoins in the UK, and we will be consulting on a world-leading regime for the rest of the crypto-asset market later this year.”

Griffith admitted that there might be doubts about the future of crypto but not exploring the potential of the underlying technology would be foolish.

FTX founder Sam Bankman-Fried denies knowledge of fraud

FTX’s ex-CEO Sam Bankman-Fried continued to defend himself in an interview with Good Morning America. The former head of the bankrupt exchange stated that he was unaware of any improper use of customer funds in regard to Alameda Research.

Sam Bankman-Fried’s comments came a day after he confessed to failure of oversight as he unknowingly commingled funds. Bankman-Fried is consistently facing criticism for his comments, as he also said in the interview,

“I think I got a little cocky.”

Regardless, as recently stated by FTX’s new CEO, John Ray, Sam Bankman-Fried and his associates are no longer involved in the day-to-day operations of the company.