ITALY Law and Practice Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Studio Patti
respect of which they provide services. This informa- tion is typically derived from the relevant white papers and must be accessible to clients in a clear and usable form. In addition, CASPs must warn clients of the risks asso- ciated with crypto-assets and provide access (includ- ing via hyperlinks) to the relevant white papers when offering services such as trading, exchange, advice or portfolio management. In this way, ESG disclosures are embedded within the broader investor protection framework. 1.2.4 Tax Italy has introduced a specific tax regime for crypto- assets under the 2023 Budget Law (Law No 197/2022), subsequently amended by the 2025 Budget Law (Law No 207/2024) and further refined by the 2026 Budget Law (Law No 199/2025). Capital gains from crypto- asset transactions are subject to a substitute tax of 26%, increased to 33% as from 2026, provided that the total gains exceed the annual threshold of EUR2,000. Taxpayers were offered a voluntary disclo- sure window (“ regolarizzazione ”), enabling retrospec- tive declaration of previously undisclosed holdings, subject to a 14% substitute tax on deemed gains. Significant interpretive uncertainties remain: the char- acterisation of staking and DeFi yields – whether ordi- nary income or capital gains – is unsettled. NFTs and utility tokens also pose classification challenges. The lack of binding guidance from the Revenue Agency creates operational difficulties for both taxpayers and advisors, while cross-border holding structures may trigger complex CFC and transfer pricing considera- tions. 1.2.5 Insolvency Initially, Italian law did not provide for a specific insol- vency or resolution regime tailored to blockchain- based businesses or crypto-asset operators. Entities operating in this space were therefore subject to the ordinary rules of corporate insolvency, without differ- entiation based on the technological nature of their activities. This position is now evolving as a result of the entry into force of MiCAR, which introduces a structured regulatory framework for CASPs and certain catego-
ries of issuers. While MiCAR itself does not establish a fully-fledged, standalone resolution regime compara- ble to that applicable to banks, it brings crypto-asset firms within a regulated perimeter characterised by prudential and organisational requirements, which are relevant also in a distress or insolvency scenario. In particular, MiCAR imposes obligations on CASPs relating to safeguarding of client assets, governance and operational resilience, which are designed to miti- gate insolvency risk and facilitate an orderly manage- ment of client positions in case of failure. This repre- sents a shift from a purely unregulated environment to one where firms are subject to ex ante controls and ongoing supervision. At the national level, the Italian implementing legisla- tion adapting the legal system to MiCAR introduces specific provisions that refer back to existing regimes applicable to regulated financial intermediaries, includ- ing banks and investment firms. These references are particularly relevant for aspects such as supervisory powers, administrative measures and, indirectly, crisis management tools. The approach is therefore one of regulatory integration, rather than the creation of an The main trade association in the Italian crypto-asset industry is AssoCASP (Associazione Crypto-asset Service Providers), established in 2024. AssoCASP serves as the representative body for CASPs operat- ing or seeking authorisation in Italy, and acts as a uni- fied voice for the industry in regulatory consultations and policy discussions. AssoCASP facilitates dialogue between operators and supervisory authorities (Con- sob, Banca d’Italia, OAM), promotes best practices in compliance and governance and offers members a platform for sharing regulatory intelligence. The asso- ciation’s contribution to shaping a sustainable regula- tory environment positions it as a key interlocutor for both regulators and market participants. entirely new insolvency framework. 1.2.6 Industry and Trade Bodies
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