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Despite the failure of FTX, plans for a crypto center in the UK and Italy are going as planned

According to UK Economic Secretary Andrew Griffith, the nation will make progress toward its goal of becoming a center for the cryptocurrency industry.

Photo by Artur Tumasjan / Unsplash

Italy will apply the 26% capital gains tax on crypto earnings exceeding EUR 2,000.

A new crypto hub

According to UK Economic Secretary Andrew Griffith, the nation will make progress toward its goal of becoming a center for the cryptocurrency industry (1).
Sam Bankman-Fried, the founder and former CEO of FTX, said he was unaware of the misappropriation of consumers' money. In line with other nations like Portugal, Italy is getting ready to tax digital assets. Digital assets are now at the forefront of governments' concerns due to the collapse of the crypto market after FTX's demise. Regardless, the United Kingdom plans to continue working toward becoming a crypto hub.

Italy to charge crypto traders.

Italy has unveiled a provision in the country's proposed 2023 budget that will also apply the capital gains tax on income from cryptocurrency trading. Gains on digital assets above 2,000 euros will be subject to a 26% tax. (2)

The administration of Italian Prime Minister Giorgia Meloni also introduced a new measure. The proposed law will allow taxpayers to report the ownership of their digital assets on their tax filings. Consequently, the residents would be required to pay a 14% tax on the value of the assets they owned as of January 1, 2023. The plan also expands stamp duty to cover digital assets and adds transparency requirements.

The United Kingdom aims to establish itself as a crypto center.

Following the demise of FTX, Many nations turned their formerly upbeat views on cryptocurrencies into caution. Nevertheless, despite worries that the situation may spread to other cryptocurrency firms, the United Kingdom won't be backing down. According to UK Economic Secretary Andrew Griffith, the nation would not alter its path and keep advancing its cryptocurrency objectives. Griffith remarked at TheCityUK's National Conference,

"We're moving this agenda ahead, and I continue to serve as chair of the crypto-engagement committee to consult with business and report achievements. Thanks to the Financial Services and Markets Bill, we can already create a framework for regulating stablecoins and crypto assets in the UK. Later this year, we'll be consulting on a world-class framework for the rest of the market."

Griffith acknowledged that there might be concerns about cryptocurrency's future, but it would be stupid to ignore the promise of the underlying technology. Sam Bankman-Fried, the founder of FTX, denies knowing about fraud. He maintained his defense in a Good Morning America interview. (3)

About Alameda Research, the former CEO of the collapsed exchange said that he was unaware of any inappropriate usage of customer cash. Sam Bankman-Fried made his remarks a day after admitting that he had failed to exercise proper monitoring and had unintentionally mixed up monies. Bankman-Fried stated in the interview that he frequently receives criticism for his remarks. However, Sam Bankman-Fried and his partners are no longer active, as recently announced by FTX's new CEO, John Ray.