ITALY Trends and Developments Contributed by: Francesco Paolo Patti and Marta Vittoria Colombo, Patti Legal
force of the 33% substitute tax on capital gains and other income derived from crypto-assets, introduced through recent budget laws and now fully operational from 1 January 2026. This reform marks a clear shift towards aligning cryp- to-assets with traditional financial investments from a fiscal perspective, reinforcing their classification as economically relevant assets within the Italian sys- tem. At the same time, the regime has become more nuanced. In particular, certain euro-denominated elec- tronic money tokens (EMTs) compliant with MiCAR may benefit from a differentiated treatment, remaining subject to the lower 26% rate, reflecting their closer functional proximity to traditional payment instru- ments. Further clarifications have also been introduced with respect to taxable events. While disposals against fiat currency clearly trigger taxation, specific forms of crypto-to-crypto exchanges may, in certain cases, benefit from neutrality rules, depending on their eco- nomic substance and classification. This remains, however, an area where interpretative uncertainty persists and where further administrative guidance is expected. Other important grey areas remain. In particular, the tax treatment of DeFi-related income – such as stak- ing, lending or liquidity provision – continues to lack clear and consistent guidance, especially as regards the distinction between capital gains and ordinary income. Similarly, NFTs and hybrid tokens still raise classification challenges. Overall, the Italian tax regime reflects a broader trend of progressive normalisation: crypto-assets are no longer treated as exceptional instruments but are increasingly embedded within the general fiscal framework. However, the pace of technological inno- vation continues to outstrip regulatory clarification, leaving room for interpretation and requiring careful
regulatory implementation will translate into tangible market structure. First, the long-anticipated MiCAR authorisation phase is expected to materialise. The granting of the first CASP licences – likely concentrated in the months leading up to July 2026 – will mark the transition from a preparatory environment to a fully supervised market. This will provide much-needed clarity on supervisory expectations in practice, particularly in areas such as governance, outsourcing, and operational resilience. Second, market consolidation is likely to accelerate. The significant compliance costs associated with MiCAR – combined with capital requirements and organisational burdens – are expected to reduce the number of active operators. Smaller or less structured players may exit the market or seek partnerships with authorised entities, leading to a more concentrated but also more stable ecosystem. Third, the trend towards institutionalisation will con- tinue. Traditional financial institutions, including banks and investment firms, are expected to play an increas- ingly central role, either as authorised CASPs or as partners in regulated initiatives. This will contribute to a gradual normalisation of crypto-asset services within the broader financial system. Fourth, tokenisation of financial instruments and real- world assets (RWAs) is likely to represent the most dynamic segment of the Italian market. The legal cer- tainty provided by the FinTech Decree and the DLT framework, combined with growing institutional inter- est, is expected to drive further projects in areas such as bonds, minibonds and structured products. Taken together, these trends suggest that the Italian market will evolve less as a hub for rapid expansion and more as a controlled environment for regulated, institutional-grade innovation. Conclusion Italy’s approach to blockchain and crypto-assets is best understood as one of regulated integration rath- er than regulatory competition. The country has not positioned itself as a jurisdiction aimed at attracting large volumes of operators through speed or flexibil-
tax planning by market participants. Key Trends for the Next 12 Months
Looking ahead, the Italian blockchain and crypto- asset market is entering a decisive phase in which
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