Stamp duty on cryptocurrencies 2024

Stamp duty on cryptocurrencies 2024

Following the new Budget Law 2023, stamp duty was introduced on Young Platform.

Young Platform has updated its Terms and Conditions, introducing new rules regarding stamp duty for its users. This update has been introduced in compliance with the Italian Budget Law 2023, particularly with circular number 30/E of the Agenzia delle Entrate having as its subject “Tax treatment of crypto-assets. Article 1, paragraphs 126 to 147, of Law No. 197 of 29 December 2022′.

As an ‘other financial operator’, Young Platform must charge stamp duty to its users for anti-money laundering regulations and tax monitoring obligations (Article 1(1) of DL 167/1990).

This tax is equal to 0.2 per cent of the value of the cryptocurrencies held by the user on 31 December of the taxable year. Let’s look at stamp duty, who is responsible for paying it, and how it can be paid.

1. Definition of Stamp Duty

Stamp duty is an indirect tax that applies to certain economic transactions as a sign of the taxpayer’s financial capacity. In practice, this tax affects transactions that indicate a specific economic availability, such as the transfer or consumption of goods and services and financial instruments. Until 2022, cryptocurrencies were exempt from this type of tax. However, with the introduction of Act No. 197 of 27 December 2022, the situation changed: now, those who own cryptocurrencies have to pay stamp duty.

2. Who is liable to pay Stamp Duty

Regardless of their tax residence, all cryptocurrency holders are now subject to the stamp duty obligation. This obligation applies irrespective of the exchange used to hold one’s cryptocurrencies.  

3. Calculation of the tax base

The taxable base for stamp duty is 0.2% of the value of cryptocurrency assets held at the end of each calendar year. It is, therefore, calculated by multiplying the value of cryptocurrencies held on 31 December of the relevant year by the 0.2% rate. If the computed tax is less than 1 euro, the applicable tax will still equal this amount (1 euro) under Article 3, paragraph 3 Presidential Decree 642/72. 

It is reported in section 3.7.3 of the Revenue Agency’s circular that explains how the tax value is calculated:

The tax base consists of the value corresponding to the value of the crypto-assets at the end of each calendar year, as recorded by the exchange platform where the purchase thereof was made. Should it not be possible to ascertain the value on the 31st of December of the reference year from the platform where the crypto-asset was originally purchased, such value may be ascertained from a similar platform where the same crypto-assets are tradeable or from specialised sites in the detection of their market values. In the absence of the aforementioned value, reference should be made to the purchase cost of the crypto-assets. If the crypto-assets are no longer held as of the date of the 31st of December, reference should be made to the value ascertained at the end of the holding period. As provided by paragraph 19 of article 19 of the decree law no. 201 of 2011, the tax is due in proportion to the days of holding and the share of ownership in the case of jointly held crypto assets.

4. How much do I have to pay for the tax?

The tax is calculated automatically by the platform. You can find the details under ‘Profile’ > ‘Payments and Gift Cards’ > ‘Stamp Duty’. 

5. By when must stamp duty be paid?

On Young Platform, the balance must be paid by 1 April of the year following the end of the tax period, i.e. by 1 April 2024 for the tax relating to 2023.

6. How is stamp duty paid?

In the specific case of Young Platform, the stamp duty will be automatically calculated and deducted from the user’s Euro Wallet as of 21/02/2024 against adequate liquidity to meet the relevant tax liability. 

Consequently, for all users who, as of 21 February 2024, did not have enough liquidity in the Euro Wallet of their Young Platform account, the charge will be made at the first useful transaction. It will be sufficient to deposit into your account via one of the following payment methods:

  • Credit, debit or prepaid card.
  • Bank transfer.
  • Converting cryptocurrencies into fiat currency.

7. Where can I find details of the tax payment?

In the Euro Wallet section, under ‘History’, there will be an entry ‘Stamp Duty’. By clicking on it, it will be possible to view the details of the transaction:

  • Transaction ID
  • Reasons under “Notes” 
  • Date of execution
  • Status

8. How often does one have to pay stamp duty? 

Stamp duty must be paid annually, due by April. The amount to be paid is based on the value of cryptocurrencies held on 31 December of the previous tax year.

Everything you need to know on Ripple, XRP and the SEC

According to European legislation, Ripple is compliant. Therefore Young Platform will not be removing XRP

The Enquiry

On 22 December, the SEC filed a lawsuit against Ripple Labs, the company behind the cryptocurrency XRP. The SEC (Securities and Exchange Commission) is the federal agency that oversees the US stock exchange. The SEC is investigating the relationship between Ripple Labs and XRP, alleging that the latter is actually a security token.

The SEC alleges that the founders launched the XRP currency by selling it as a share of the Ripple company, without registering it as such. The ICO launched by XRP raised more than $1.3 billion from investors all around the world. Therefore, the lawsuit centres on the fact that the SEC holds Ripple Labs responsible for failing to register its offering as an investment contract for investors. Ripple promptly responded to the lawsuit, anticipating the SEC’s official charges on Twitter.

XRP will stay on Young Platform

The debate has led to the major US-based exchanges delisting or planning to delist XRP.

However, according to European legislation, Ripple is compliant. Therefore Young, like other European exchanges, will not be removing XRP from the Young Platform and Young Platform Pro exchanges at this time. This is because we want to avoid harming our users and give them the ability, in accordance with current European regulations, to continue to sell, buy or trade their XRP.

The future of XRP on Young Platform

Should the company’s main liquidity providers remove Ripple from their offerings, it is likely that Young will also be forced to delist XRP. Should this happen, our customers’ funds will still be protected by allowing them to be converted to fiat or sent to external wallets prior to removal. Again, users will be notified well in advance to allow them to better plan and manage their XRP funds.

Young will continue to follow the debate closely and keep its users updated.

XRP recorded a 55% growth in the last 24 hours.

Read more about Ripple and XRP in our dedicated Academy article.

DeFi lands on Young Platform Pro!

Discover the DeFi tokens on Young Platform Pro: decentralised finance is an alternative

Young is always happy to bring its users new mission-oriented projects, that’s why from today many DeFi tokens will be supported on Young Platform Pro. Trading and custody are now available for these seven tokens, which are completely new to our ecosystem: Uniswap (UNI), Curve (CRV), Synthetix (SNX), Chainlink (LINK), Augur (REP), Gnosis (GNO) and Kyber (KNC).

We are firmly convinced that the greatest power of the blockchain lies in its decentralised nature. That is why DeFi, i.e. Decentralised Finance has all the resources to institutionalise the world of cryptocurrency, representing an increasingly powerful alternative to traditional banking services.

Uniswap (UNI)

Uniswap is a decentralised exchange, known for facilitating automated DeFi token trading. UNI is the governance token of the network and is an ERC-20 token. As a governance token, it is used to make decisions and authorise transactions on the Uniswap network.

Curve (CRV)

Curve is a decentralised exchange for stablecoins, governed by a DAO, i.e. a decentralised organisation. The native token of the Curve ecosystem is the Curve DAO token (CRV). Launched in January 2020, Curve experienced significant growth in the second half of 2020.

Synthetix  (SNX)

Synthetix is an Ethereum blockchain-based protocol that allows users to bet on various external assets by trading and issuing synthetic assets in a process known as “collateralisation”.
Each of these assets is an ERC-20 token that reflects the price of external assets such as, for example, the dollar price. These assets are created by staking the network token, the Synthetix Network Token (SNX).

Chainlink (LINK)

Chainlink is a decentralised network that connects smart contracts with the outside world through “oracles”, external data providers. LINK, the token operating on the network based on the Ethereum blockchain, is the top DeFi token by market capitalisation. Chainlink is also available on Young Platform.

Augur (REP)

Augur is a betting platform based on the Ethereum blockchain which, through the use of its own token, the REP, allows you to create and participate in prediction markets. If the prediction made is correct you win REP, otherwise, you lose them.

Gnosis (GNO)

Gnosis is a prediction market used to gather forecasts from experts and people around the world to help anticipate future events. Gnosis is based on two tokens: OWL and GNO. GNO is an ERC-20 token that is obtained as a reward for a correct prediction.

Kyber Network (KNC)

Kyber is the most widely used liquidity protocol in the DeFi world that can be integrated into any application to allow the exchange of tokens without the need for an intermediary. Kyber Network Crystals (KNC) is the ERC-20 utility token of the network. KNC owners can stake their tokens on KyberDAO and vote on various proposals concerning the development and operation of the network and receive a reward in ETH.

Young announces the new partnership with MakerDAO!

Dai in Young Platform exchange: the most adoptded decentralized stablecoin in the cryptocurrency market

We are thrilled to have the opportunity to cooperate with MakerDAO to push comprehension and mass adoption of DeFi: we will educate the Italian audience about Maker’s stablecoin Dai through Young Academy and Stepdrop. Later on, we are also planning the integration of Dai in the Young ecosystem.

MakerDAO is one of the most innovative projects in the Decentralized Finance (DeFi) movement – a catch-all term for financial tools and services that don’t rely on centralized parties to coordinate and control access.

MakerDAO issues Dai, the world’s first unbiased currency and leading decentralized stablecoin on the Ethereum blockchain. Dai eliminates volatility through an autonomous system of smart contracts specifically designed to respond to market dynamics. Since its launch in 2017, Dai has successfully maintained a soft peg to the US Dollar (1 DAI ≃ 1$).

Price volatility is a major barrier for a massive amount of “everyday” users to continuously use blockchain applications. With a presence on numerous cryptocurrency exchanges, multiple partnerships with global companies, and agreements with organizations serving non-government agencies, Dai is right now the main and most adopted decentralized stablecoin on the market to solve this pain point and can therefore open the way to new scenarios.

We are very excited to start our journey in DeFi together with Maker since we believe DeFi has become one of the main trends in the crypto space with its huge potential of democratizing the financial system.

Cryptocurrency, capital increase for the Italian exchange Young Platform

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Only 5 months after the launch of its exchange, Young Platform has opened a capital increase and appointed a Board of Directors

Young Platform announces the opening of a new capital increase and the appointment of the Board of Directors, despite the difficult moment due to the COVID-19 emergency. 

Only 5 months after the launch of the Young Platform exchange, the company, based in Turin and with an office in London, has recorded a significant growth both in terms of registered users and volumes transacted, in a market such as that of Bitcoin and cryptocurrency, which seems to be reacting positively to the current financial crisis. 

“In this challenging worldwide economic situation we decided not to stop but to react by announcing two important new operations”, says Andrea Ferrero CEO & Co-Founder of Young. “We have in fact opened a capital increase involving a number of highly prestigious Italian and international investors and appointed a Board of Directors whose objective is to institutionalize the company and give more and more credibility to our sector”, concludes Ferrero. 

In addition to Ferrero himself, the new Board of Directors is composed of Mariano Giovanni Carozzi and Alberto Bertagnolio Licio, formerly Young’s CFO. 

Carozzi has decades of experience in the banking world (first in Banca Sella and then in Banca Profilo) and for several years he has been personally involved in the evolution of the Italian fintech world (having founded Prestiamoci and having been Chairman of Tinaba). 

“I decided to embrace the project because I strongly believe in its team and in the further growth of this sector, a growth which we will witness in the coming years and of which Young will be the absolute protagonist”, says Carozzi. 

The company has also identified in the law firm “Gitti and Partners” (specifically in Prof. Gregorio Gitti) and in the notary Remo Maria Morone the professional figures who will guide it in the coming months in a path with the ultimate goal of making Young Platform the first fully regulated Italian exchange of cryptocurrency. 

This path began a few months ago with a collaboration agreement on Anti-Money Laundering with Netech and with the subsequent inclusion within the company structure of Mr Ettore Valsecchi as AML Manager (who has thirty years of experience in the sector and who collaborates on these issues with the most important Italian financial institutions) and with the appointment of Mr Alessandro Perillo as Internal AML Manager. 

“Over the last few difficult weeks, Young Platform has also entered into new partnerships with some of the most important international companies in the blockchain world, which will be announced shortly, and was supported by Helperbit in a cryptocurrency fundraising campaign for the Italian Red Cross, thus confirming that the crypto ecosystem at international level is in turmoil and more alive than ever,” says Diego D’Aquilio, CMO & Head of International Expansion of Young Platform.

How Bitcoin community helps Italy during coronavirus emergency

Looking at the fundraising campaign powered by Croce Rossa and Young Platform: Bitcoin are a powerful tool to deliver fast economical aid during calamities,

On April 6th the second level Advanced Medical Post for pre-triage was set up in Castel Gandolfo by the Italian Red Cross – Colli Albani Committee. The AMP was purchased using the bitcoin donations raised thanks to the Helperbit platform and with the support of Young and Blockchain Education Network Italy, and in a short time, it was delivered and deployed.

On March 12th, Colli Albani Committee launched a bitcoin fundraising campaign focused on the COVID-19 emergency in Italy. This was the first initiative in the cryptocurrency sector and this led to media attention and international visibility. The first target of € 10,000 in BTC was achieved in just three days; it was possible to quickly exchange the raised money in Euro and purchase the material needed to build the AMP, which is already functioning at the time of writing. The fees of the procedures, from the initial donations to the purchase, are worth 0.55%.

The campaign is still running and the second target of € 25,000 in BTC is almost reached.

Bruno Pietrosanti, President at Colli Albani Committee, said: “With great pleasure, we reached the first main milestone of our fundraising. We are happy to have turned the received donations into a tangible aid and we are excited to have received so much help from the Bitcoin community.”

Guido Baroncini Turricchia, CEO at Helperbit, commented: “When Colli Albani Committee sent me photos of the tent, a gift granted by the solidarity of the Bitcoin community, I was excited. The efforts of Helperbit, jointly with Bitcoin donors, are now saving lives and helping to protect first responders on the front line. Those people, that in the silence of their home donated to the project, must be proud to be part of this charitable initiative. Bitcoin confirmed to be a powerful tool, a technology that allows to deliver direct and fast international aid during calamities, increasing also the transparency level. ”

Fundraising project created by Colli Albani

The Italian Red Cross – the Colli Albani team during the set-up at Castel Gandolfo
The QR code, which shows the Bitcoin address managed by the Albani Colli Committee

Young Platform supports the first italian capital increase in bitcoin and ether

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Bitcoin and ether held on Young Platform in the first italian capital increase in cryptocurrency.

Young Platform backed BAI.G. Research Center Impresa Sociale S.r.l. in the first capital increase in cash and cryptocurrencies, the only one of its kind in Italy. 

BAI.G deliberated that part of the increase could be carried out through the sale of credits backed by a certain amount of bitcoin and ether held on Young Platform, chosen as a partner and guarantee for this operation.

“We are honoured to have been chosen by BAI.G. for this operation, which represents a milestone in Italy”, says Andrea Ferrero, CEO & Co-Founder of Young Platform.

The operation, unique in its kind, stands out in at least two aspects.

  1. For the first time, an asset has been conferred in the form of the native cryptocurrency of the blockchain Ethereum, ether (ETH), in addition to bitcoin (BTC). It is, therefore, the first multi-crypto-currency corporate operation.
  2. The second is the very nature of the conferment of credits by the clients towards a wallet provider, i.e. that it consists of two distinct cryptocurrencies.

The choice fell on the two cryptocurrencies with the greatest diffusion in the world and a national wallet provider such as Young Platform was chosen to act as custodian, guaranteeing, as long as it holds these cryptocurrencies are held by it, a point of reference for Italian jurisdiction in the case of provisions issued by the national authorities.

Precisely for these reasons and with the intention of establishing the best practice, BAI. G will keep its crypto-assets or cryptocurrencies in the care of third parties such as Young for the entire duration of its existence. 

This operation, therefore, represents a further step forward in the process of adapting the national legal system to the challenges presented by cryptocurrencies and, in general, by the blockchain.  Moreover, the intervention of an Italian exchange such as Young Platform, increases the security level of the operation, not only for the social creditors, but also for the national authorities.

young platform supports the first italian capital increase in bitcoin and ether

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