With nations all over the world enacting laws to control its use and reduce related risks, the vibrant world of cryptocurrencies keeps growing. Italy is no different. Italy is positioned as a leader in the adoption and regulation of digital assets thanks to its extensive framework that is designed to comply with EU regulations. This blog examines Italy's current cryptocurrency laws, the regulatory agencies that oversee them, business compliance requirements, tax laws, and the effects of impending EU-wide laws like MiCA.
Is Cryptocurrency Legal in Italy in 2025?
To make this matter clear, in Italy, it is legal to hold, trade, and own cryptocurrencies like Ethereum and Bitcoin. They are not accepted as legal tender in the nation, though. The European Union's regulatory frameworks govern crypto assets in Italy, with a special emphasis on anti-money laundering (AML) regulations.
Through the "Organismo Agenti e Mediatori" (OAM), its national organisation, Italy has been putting the Fifth Anti-Money Laundering Directive (AMLD5) into effect since 2022. All Virtual Asset Service Providers (VASPs) doing business in Italy are required by the OAM to register and adhere to Know Your Customer (KYC) and AML regulations. The goal of these compliance measures is to reduce the risks of financial crime related to cryptocurrencies.
Key Points
- Cryptocurrencies are regulated but not regarded as legal tender.
- It is legal to own and trade crypto-assets.
- Italy regulates crypto-assets using AML laws, guaranteeing compliance and transparency.
Regulatory Bodies Governing Cryptocurrency in Italy
Italy has put in place a strong framework for monitoring cryptocurrency activity, allocating regulatory duties to various organisations. An overview of the major organisations and their functions is provided below:
OAM (Organismo Agenti e Mediatori)
- Keeps the Virtual Asset Service Providers (VASPs) public registry up to date.
- Makes sure cryptocurrency platforms follow EU and national regulations and enforces AML compliance.
Bank of Italy
- Offers financial institutions advice on how to operate with cryptocurrencies.
CONSOB (Italian Securities and Exchange Commission)
- Responsible for overseeing the regulation of securities and tokens linked to investments.
- Keeps an eye on cryptocurrency investment funds and initial coin offerings (ICOs) to ensure they adhere to securities regulations.
The Financial Intelligence Unit Italy (UIF)
- Receives and examines reports of suspicious transactions from VASPs.
- Works together with other regulatory bodies to stop the funding of terrorism and money laundering.
- The presence of these specialised organisations guarantees thorough regulatory oversight that is especially adapted to the various aspects of the cryptocurrency ecosystem.
VASP Registration Requirements in Italy
For virtual asset service providers to operate lawfully in Italy, they must adhere to strict registration and compliance requirements. The following requirements apply to these companies, which include wallet providers, cryptocurrency exchanges, and decentralised finance (DeFi) services:
Key Compliance Steps:
OAM Registration
- The OAM registry for Virtual Asset Providers requires registration from all platforms that operate in the virtual asset space. This registration guarantees that companies are subject to regulatory oversight and are functioning within the law.
KYC and AML Measures
- The second step on our list, KYC and AML measures are put in place; therefore, platforms are required to submit Customer Due Diligence (CDD) protocols. This entails gathering and confirming personal data, including proof of address, government-issued identification, and other pertinent records.
Appointment of a Compliance Officer:
- Another important step on our list suggests that the companies must appoint a compliance officer to enforce stringent adherence to regulations. In addition to ensuring adherence to changing regulations, this officer must supervise the execution of AML/KYC procedures and serve as a liaison with regulatory bodies.
Reporting Obligations
- Our second-to-last step to make sure compliance is reached is reporting requirements. Platforms are required to keep a close eye on transactions and notify the UIF (Financial Intelligence Unit) of any suspicious activity or transactions. This entails spotting odd trends, sizable or erratic transfers, and any activity that might point to money laundering or other illegal activities.
Cryptocurrency Taxation in Italy
Italy has made its position on taxing crypto-assets clear with the recent implementation of tax reforms in 2023. In order to comply with upcoming EU regulations such as the Crypto-Asset Reporting Framework (CARF), the government wants to more smoothly incorporate cryptocurrency taxation into its entire financial system.
Key Tax Measures:
Capital Gains Tax:
Cryptocurrency profits over €2,000 are subject to a flat 26% tax rate. All taxable transactions are covered by this, including cryptocurrency purchases, sales, and exchanges.
Taxation of Mining and Staking
Depending on the particulars of the activity and local regulations, profits from mining and staking could be subject to income tax regulations. Income from NFT sales and profits from these activities may be subject to regular income tax.
Reporting Requirements
In the RW section of their yearly tax returns, investors must disclose the cryptocurrency holdings they have on foreign exchanges. There could be fines or penalties for not disclosing these holdings.
Transitioning to MiCA Regulation in Italy
A ground-breaking legislative framework created to standardise crypto regulation among EU member states is the Markets in Crypto-Assets Regulation (MiCA) of the European Union. By the end of 2025, Italy is anticipated to implement the MiCA framework.
Key Implications of MiCA:
Licensing Requirements
One step that helps is strict licensing guidelines, which guidelines established by regulatory bodies must be followed by cryptocurrency issuers and stablecoin suppliers.
Rights of Passporting
One EU nation's Licensed Virtual Asset Service Providers (VASPs) will be able to function seamlessly in all 27 member states. By doing away with the requirement for multiple licenses, this streamlines cross-border operations and promotes increased cooperation within the single market.
Function Separation
Companies that provide trading and custodial services must draw distinct operational lines between them. The purpose of this division is to guarantee increased accountability in the sector, avoid conflicts of interest, and lower the possibility of customer funds being misused.
Investor Protections
Businesses will have to give precise, thorough, and unambiguous information about their goods and services under the new disclosure regulations. The goal of this emphasis on transparency is to greatly increase market confidence by arming investors with the information they need to make wise decisions.
How Sanction Scanner Supports Compliance for Crypto Firms in Italy
Although navigating Italy's regulatory environment may seem difficult, crypto businesses can make compliance easier with the help of tools like Sanction Scanner. Sanction Scanner offers:
- Transaction Monitoring, since real-time alert systems and adjustable thresholds allow you to quickly spot questionable activity.
- Real-time user screening, to guarantee compliance, quickly checks users against international PEP and sanctions lists.
- Detailed Audit Logs, to maintain thorough documentation specifically for OAM and UIF regulatory reviews.
- In addition to guaranteeing compliance, using programmes like Sanction Scanner increases operational effectiveness.
Italy's Top Cryptocurrencies for 2025
Crypto adoption has been steadily increasing in Italy, particularly among fintech-savvy users and young investors. More than 4.8 million Italians are thought to own or trade cryptocurrencies as of early 2025 (source: Consob, Chainalysis). Mainstream engagement has been fuelled by the emergence of mobile trading apps, EU-wide regulation, and growing interest in DeFi and NFTs.
Top Traded Cryptocurrencies in Italy:
| Rank | Cryptocurrency | Popularity Reason | % of Daily Trade Volume |
| 1 | Bitcoin (BTC) | Store of value, widely accepted, seen as digital gold | ~33% |
| 2 | Ethereum (ETH) | Smart contracts, staking rewards, active Italian dev base | ~26% |
| 3 | Tether (USDT) | Euro-pegged trades, stability in volatile markets | ~18% |
| 4 | Ripple (XRP) | Preferred by cross-border payment users & fintech apps | ~11% |
| 5 | Solana (SOL) | NFT and gaming adoption in northern Italy | ~7% |
Tether is frequently utilised as a euro-to-crypto bridge on regional exchanges, whereas Ethereum is still well-liked for its staking capabilities. Solana is becoming more popular in NFT marketplaces located in Florence and Milan.
Is Italy a Crypto-Friendly Country in 2025?
Italy is regarded as a moderately crypto-friendly nation within the EU, despite its complicated regulations. The legal framework permits ownership and trading under OAM's supervision, with additional supervision from the Bank of Italy and CONSOB.
Crypto-Friendliness Scorecard (Italy 2025):
| Factor | Status | Notes |
| Ownership | Allowed | Legal to hold and trade crypto assets |
| Trading | Regulated | OAM registration required for VASPs; MiCA transition ongoing |
| Taxation | Moderate | Capital gains over €2,000 are taxed at 26%; foreign holdings must be declared |
| Payment Use | Limited | Not legal tender; accepted by select online merchants and travel firms |
| Innovation Climate | Growing | Strong fintech hubs in Milan & Turin; DeFi interest on the rise |
Italy is currently working to align with the EU's Markets in Crypto-Assets Regulation (MiCA), which will give users more protection and grant crypto businesses EU-wide passporting rights.
FAQ's Blog Post
Cryptocurrency regulations refer to laws and guidelines that govern the use, trading, taxation, and security of digital assets.
To prevent money laundering, protect investors, ensure financial stability, and combat illicit activities such as fraud or terrorism financing.
Legality varies by country — some fully allow, regulate, or tax crypto; others restrict or ban it entirely.
Countries like China, India, and Turkey have imposed strict rules or bans, while the EU, US, and Japan focus on AML/KYC compliance.
In most jurisdictions, yes. Operating a crypto exchange often requires registration with financial authorities and adherence to compliance rules.
Crypto platforms must implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to verify users and monitor transactions.
Yes, in many countries, gains from cryptocurrency trading are subject to capital gains or income tax, depending on the activity and jurisdiction.
The Markets in Crypto-Assets (MiCA) Regulation is the EU’s unified framework for regulating crypto assets, stablecoins, and service providers.