Although not as popular as in the Netherlands, Germany, Switzerland or France, Bitcoin is slowly gaining popularity in yet another region of Europe beloved by many - Italy. If you think this country is just a beautiful place with delicious wine, picturesque vineyards and cheese melted on top of various margaritas, think of a place where you can rent a car and book a hotel using Bitcoin.
OK, not everywhere, but at least in Lombardy, Trentino - South Tyrol and Veneto there are a few places that fall into the small and medium-sized category that Italy is so famous for.
Are cryptocurrencies and blockchain legal in Italy?
First, yes, cryptocurrencies and blockchain are legal in Italy because the country is part of the cryptocurrency-friendly region, the European Union, but we should keep in mind a whole set of nuances.
There is no ban on cryptocurrencies in the country, but authorities do not fully regulate the use of Bitcoin by individuals.
Blockchain is partially regulated, but several areas still need to be addressed - these include the use of DLT, the lack of a clear picture of possible financing options, and the lack of full legal recognition of smart contracts.
When it comes to cryptocurrencies, individuals only tax speculative activities, and the tax in this case is 26%. What does this mean? If the amount of cryptocurrencies you own during the tax year exceeds 51,000 euros, you are liable to pay 26%. Therefore, if you trade cryptocurrencies, you must tax your profits as income. However, if you have a smaller amount of money, you don't have to tax it. If you own large amounts of cryptocurrencies, you should always consult your tax advisor.
If you buy or sell cryptocurrencies once or twice in exchange for euros, it will be treated as a currency transaction, and the margin of the transaction is exempt from VAT. However, it all depends on the amount you exchange and, frankly, where you do it.
Companies that accumulate their income in cryptocurrencies must also pay taxes.
With all this in mind, as you can see for yourself, some cryptocurrency activities in Italy are regulated, while others, such as mining, are still challenged in terms of legislation.
What is the cheapest way to buy cryptocurrencies in Italy?
It's not that there is any particular Italian way to buy Bitcoin in the cheapest way possible. In this regard, the country is very similar to its European neighbors. You can't just walk out of your house and buy Bitcoin from a friend on the street. In theory, of course, you can, and they can directly transfer it from their wallet to yours, so you only pay the transaction fee.
But honestly, how many friends do you have who own bitcoin? These days, the easiest way is probably to use an exchange or platform like eToro, Crypto.com or Coinbase.
1.eToro - the best cryptocurrency exchange in Italy
The eToro company was founded in 2007 and since then has been operating trouble-free in more than 140 countries, including Italy. eToro is extremely reliable and secure. It has licenses and regulatory approvals from the central financial authorities of the US, Australia, Cyprus and the UK. Approval from the UK FCA in particular adds a lot of weight to eToro's credibility, as it has some of the strictest regulations.
To open an account and start trading on eToro, all you need to do is deposit a minimum of $10USD. eToro also offers digital wallet services (eToro wallet) for storing cryptocurrencies offline. What's more, the availability of a mobile app for iOS and Android users makes it easy to track trades even when you're away from your desk.
The transaction fees charged by eToro vary for different cryptocurrencies, but most transactions are charged at 0.75%-2.9%. eToro charges transaction fees through wider-than-usual spreads on both buy and sell orders, this is their way of charging transaction fees. However, the best feature of the eToro cryptocurrency exchange is their innovative trading platform called CopyTrader.
As the name suggests, CopyTrader allows you to copy the movements of various successful traders in the market. Therefore, if you are a newcomer to the cryptocurrency market, you can start by imitating the exact results of traders who have already succeeded on the platform with a single click.
The CopyTrader platform also has an innovative community where you can share tips and tricks, so you can also expand your knowledge on the subject. If you're already successful, you can allow other profiles to mimic your moves, and you can also earn promising commissions for sharing information.
All in all, eToro is a real gem for trading enthusiasts. They allow you to start with small deposit amounts and gain trading experience before moving on to larger amounts.
2. Coinbase - the best cryptocurrency exchange in Italy for beginners
If you consider yourself a beginner investor and are looking for the best cryptocurrency exchange for beginners - look no further than Coinbase. This platform is very easy to navigate and makes buying digital currencies stress-free for all skills. What's more, the provider serves millions of customers around the world. The minimum investment in this asset class starts at 2.00 units in your currency - in this case EUR.
Crypto assets listed include Bitcoin, Litecoin, Ethereum, Dash, Polkadot and others. You'll also find markets such as Solana, Dogecoin, Polygon, Yearn Finance, Dai and many others. Unlike eToro, Coinbase charges a standard commission of 1.49% for buying and selling digital currencies. To put this into perspective, for every $100 you allocate to a trading order, you have to pay $1.49 - which can add up quickly. When it comes to protecting your cryptocurrency tokens, Coinbase keeps 98% of customer funds in cold storage away from the Internet.
The exchange also goes a step further, offering an opt-in feature called whitelisting (a list of secure cryptocurrency addresses), as well as two-factor authentication for an extra layer of security. Coming back to fees, if your preferred payment method is a debit card - this exchange requires 3.99% of the purchase amount. This is high compared to the 0.5% exchange fee charged for depositing on eToro. You can also choose a bank transfer from Italy, which is free, but takes longer to clear, delaying access to digital markets.
What to follow when choosing a cryptocurrency exchange in Italy
When you're looking for the best cryptocurrency exchange in Italy, it makes sense to focus your search on important topics, both from a cryptocurrency and trading perspective. Below are the main areas that we believe a great cryptocurrency exchange platform should successfully cover:
Security and trust
Regardless of your location, blockchain technology encrypts your digital funds in a way that no hacker has yet managed to crack. Although the public ledger is visible to the entire world, any rogue entity must have your password or keys in order to transact with your funds. As long as you are careful not to share your password or recovery key with anyone and you keep your computer in a safe place, your funds should be safe on the blockchain.
Payment options:
Bitcoin and other cryptocurrencies are also available for purchase in Italy through online exchanges, peer-to-peer (P2P) exchanges and Bitcoin ATMs. Each of these options has its pros and cons, and first-time cryptocurrency buyers must decide how to get involved in the Bitcoin community. Although P2P exchanges enjoy some global popularity, cryptocurrency exchanges provide a very convenient and efficient solution when it comes to cryptocurrency trading.
Fees:
Investors can make multiple transactions through cryptocurrency exchanges, with each of these exchanges having its own fee structure. Prices for cryptocurrency transactions vary, but most cryptocurrency exchanges charge between 0.1% and 0.5% per transaction. This means that if your $1,000 order is processed, you may have to pay between $1 and $5 in transaction fees.
Beginner-friendly:
Cryptocurrency prices can be volatile. This makes them excellent speculative opportunities for investors who can make money from trading activities. The disadvantage of trading cryptocurrencies for some investors may be the learning curve and technical terminology required. Using the popular cryptocurrency exchanges mentioned in this article will ensure a smooth start to your learning curve.
Customer service:
If you are considering different options before joining the platform , you may want to consider eToro, which focuses on cryptocurrency trading. Since eToro is an established brokerage company with strong customer service and resources to help people make their first bitcoin purchases, we think this platform is a great option for both beginners and traders looking for more advanced strategies.
How can I buy bitcoin or other cryptocurrencies anonymously in Italy?
Now, why do you want to do it? Don't you want to pay taxes? OK, just kidding. Of course, bitcoin is part of the cypherpunk underground movement that hates control in any shape or form, so we understand. But be prepared for KYC to become more common in the cryptocurrency niche, which is fair enough.
Yet there is still a way to remain anonymous while shopping. Just like in any other country, in Italy you can buy bitcoin anonymously using an ATM. Bitcoin ATMs, or BTMs, are Internet-connected kiosks where you can buy or sell cryptocurrency without extensive expertise. They can be found in shopping malls, gas stations and even at the office.
There are more than 69 ATMs in Italy as of today, with 13 in Milan and Rome, nine in Bologna and five in Brescia.
How can I buy bitcoin in Italy with a credit card?
If you are a beginner and are ready for an extensive KYC procedure, you can use a Bitcoin exchange to buy bitcoin with a credit card. It's basically the same as standing in the limelight, because every single body will know, but on the other hand it's so easy, especially with services like Coinbase i Crypto.com.
If you want to buy bitcoin with a credit or debit card, you will need to register with an exchange or install a cryptocurrency wallet on your phone.
There are a whole set of Bitcoin exchanges where you can buy Bitcoin with a credit card. These include Coinbase, among others, Binance, eToro, etc.
Summary
So is it easy to buy bitcoin in Italy? Yes. All you have to do is register on one of the exchanges, such as eToro or Coinbase, and start the whole buying procedure. In addition to trading, which can be considered a legitimate activity as long as you tax your income, you can even pay with Bitcoins for some services, such as car rentals or hotel reservations.
But should you go to Italy to exclusively enjoy the benefits of cryptocurrency regulation? No, adoption has only just begun to spread on the boot-shaped peninsula, and it will still take a long time. There is a good chance that in a few years buying Bitcoin in Italy will be much easier.
The views and opinions expressed here are solely those of the author and should not be taken as financial advice either. Every investment and transactional activity involves risk, so you are advised to do your own research when making any trading, investment or financial decisions.
