Ever since the first crypto-currency emerged, all developed countries in the world took notice and wanted a slice of the cake. These ‘currencies’, of course, have had a massive effect on the global economy, and simply due to the fact that it does not ‘belong’ to any country’s jurisdiction, it can’t be predicted, controlled, or contained.
How do crypto currencies affect a country and its laws?
Certain countries have started regulating crypto-currencies, all the while participating in efforts to at least tax the ones ‘mined’ on their own territory. The crypto values have on a country’s economy are huge, it’s that world leaders emerge on these markets out of purely profitable intentions.
Crypto currencies offer a plethora of devious ways to exploit the laws regarding not just the sphere of the country’s economy, but of everyday life, standards, and such. Certain products can be purchased with Bitcoin and crypto currencies, which means that the otherwise taxable portion of this transaction goes to the Bitcoin owners instead of the state budget.
Furthermore, Bitcoin and similar crypto currencies are putting all the other currencies at risk by being as volatile as they are, especially domestic currencies. It’s easy to notice that Bitcoin in particular has risen so high and stooped so low in mere months. Of course, this usually tends to discourage a potential investor, but it also attracts a huge bunch of people (away from investing in actual currencies).
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It’s all too clear that the world has accepted Bitcoin as the new ‘universal’ currency, which means that most legislations aim to make space for it in the near future.
Bitcoin Laws in Italy
Currently, Italy doesn’t have any form of specific legislation regarding ICOs. Tokens and similar crypto currencies aren’t governed by specific provisions, financial instrument securities, and such. The main issue that stands in the way is ‘defining’ this phenomenon.
However, by using the means of law interpretation and the system of analogy, there are several options that the legislator aims to use to prevent Bitcoin’s money-laundering and tax evasion potential.
The IRA (Italian Revenue Agency) has made it clear that any financial services which involve the exchange of domestic currency and Bitcoin tokens (units), as well as vice versa, are to be exempted from the VAT. The special fee for intermediation services regarding domestic currencies and Bitcoins, under the presumption that they’re carried out professionally and directly, can be subjected (even if they’re exempt) to VAT.
These interpretations are the first steps Italian legislator has taken in defining the Bitcoin phenomenon and limiting the wildfire it has fanned. Moreover, the legislator has also implemented the use of law analogy by imposing the substitute tax of twenty six percent for certain crypto currency transactions.