Tighten regulation and expand taxation on digital assets crypto tradingItaly plans to impose 26 per cent tax on digital assets For profits above 2,000 euros (about $2,062), according to a Bloomberg Report good. Italian tax authorities currently consider digital coins and tokens to be foreign currency and tax them accordingly, which is lower than the proposed 26 percent.
The new proposal is part of Italy’s proposed 2023 budget. according to Bloomberg In the report, the bill presented by Prime Minister Giorgia Meloni’s government also gives taxpayers the option to declare the value of assets by January 1, 2023, paying a 14 percent tax, to allow Italians to account for digital assets in their taxes. be encouraged to declare. Return.
The proposed law, which could be amended in Parliament, also includes disclosure obligations and extends stamp duty to cryptocurrencies.
Recently, New York took the first step in the nation to put the brakes on the spread of cryptocurrency mining under legislation signed by Governor Cathy Hochul. The move comes amid growing scrutiny of the cryptocurrency industry following the collapse of the FTX exchange earlier this month. But, New York’s measure, which passed the state legislature in June, deals specifically with the environmental aspects of crypto.
The new law sets a two-year moratorium on new and renewed air permits for fossil fuel power plants used for energy-intensive “proof-of-work” cryptocurrency mining – a term for the computational process that powers bitcoin and its equivalent. Records and secures transactions in kind. form of digital money. Proof-of-work is the blockchain-based algorithm used by bitcoin and some other cryptocurrencies.
Cryptocurrency mining requires specialized computers that consume large amounts of energy. One study calculated that as of November 2018, bitcoin’s annual electricity consumption was comparable to that of Hong Kong in 2019, according to the US Energy Information Administration.
In India, rules for tax deduction at source on Virtual Digital Assets (VDAs) and cryptocurrencies are already in place. The rules make it mandatory for the buyer of a VDA to deduct 1 per cent of the amount paid to the seller (resident Indian) as Income Tax Deducted at Source (TDS).
In the Union Budget 2022, Finance Minister Nirmala Sitharaman also introduced a provision for tax deduction at source at 1 per cent levied on payments made on transfer of virtual assets. It also announced a levy of 30 percent on virtual assets, including cryptocurrency and non-fungible tokens or NFTs.
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