Author: Jacqueline Nieder

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.

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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.

Read the News on the Cryptonomist 

All the reasons to join Young Platform’s community of investors

To finance a company through an equity fundraising means to invest money in exchange for shares of their capital, thus becoming a full-fledged shareholder. If a company you invested in achieves success, the shares you bought could increase in value, compared to the purchase cost.

7 reasons to invest in Young Platform:

1. The investor receives a number of company “shares” from Young Agency Srl at the moment of investment.
2. If in the future Young Agency Srl were to be acquired by a third firm (Exit), enter the stock market (IPO) or if the company’s net worth were to increase, the investor would obtain profit from the investment.
3. The equity crowdfunding campaign is on Seedrs, one of the most important investment platforms in the United Kingdom. This guarantees the investor a high protection level, in fact, this platform is very attentive in selecting the companies and has a very strict Due diligence procedure.
4. Seedrs, the crowdfunding platform we are operating on, provides the chance to exchange Young Agency Srl stocks on the secondary Market (find out more by clicking here).
5. The pre-money valuation of the Young Platform project is of € 8.5 million.
6. Starting from €250 of investment, for every invested Euro you’ll receive 1 Young token. If, for instance, you invested €500 Euro, besides becoming a shareholder of Agency, at the end of the campaign you’ll be accredited 500 Young tokens.
7. Diversify your portfolio. Another upside to investing in equity crowdfunding is the possibility for the investor to more easily diversify his/her portfolio, by betting on companies that operate in different sectors, such as that of the sharing economy, agritech, 3D printing or the FinTech-crypto industry, like Young.

Other advantages

• We find ourselves in a period of unprecedented technological development, within all sectors, R&D investments multiplied, exponentially increasing the chance for successful start-ups to exit. Moreover, the start-ups adopting a lean approach can create product prototypes and models without having to use up big equities.
• We are investing within the real economy, not in unpredictable stock market titles, but in companies consisting of few people and with great growth potential. Furthermore, this allows us to provide other start-ups with our experience, in terms of culture, management and as entrepreneurs. This translates also to a great social benefit, especially for future generations, that are going to have more job opportunities and benefit from today’s investments.   
• Start-ups create new business models, consequently revolutionising old ones. The sharing economy opened everyone’s eyes to the possibility of creating new jobs and new sources of income, tackling the issue of unemployment head-on. Service providers such as Airbnb, Uber and BlaBlacar generate real benefits for everyone, this is why they should be understood, incentivised and regulated, in order to generate economic income for those who provide and a new service for those who use it.
• The Crowd Economy seems to draw near with an even stronger push. It’s an economy based on people, that engages the crowd in choosing the features of a product/service, in funding it through investments or loans. Crowdfunding and Crowdsourcing are the first embodiments of this new school of thought. In 2014 alone Crowdfunding recorded over $16,8 billion with a 167%* growth.
• Co-investment is useful for everyone, even for a professional investor, venture capital, holdings and investment funds, besides banks and investment firms that, by sharing the investment through equity crowdfunding, share the risks associated with it too. It can raise the investor’s status as a leading investor, thus creating a benefit also in terms of future co-investments. Professional investors all around the world are diversifying their portfolio, by allocating part of it to the investment in start-ups, with a view to obtaining better returns that are going to balance out the smaller ones from traditional investments.

Here, you can invest in our campaign: www.seedrs.com/youngplatform

If you have any more questions write directly to [email protected]