cryptocurrency tax problem solved- The Cryptonomist

There is a 100% Italian crypto exchange that has decided to solve the complex problem of taxation of staking income at its root. 

Its name is Cryptosmart and it is duly registered with the register of virtual currency operators (OAM). Its primary goal is to enable both professionals and ordinary people to buy, sell, deposit and transfer cryptocurrencies, tokens and digital assets with ease.

The two biggest advantages it offers its clients are probably bureaucratic/fiscal.

The regulations in Italy are not the clearest, and the procedures to be compliant with all the laws are by no means simple to understand or easy to put into practice. 

Cryptosmart’s advantages on taxation management

This is why Cryptosmart has decided to come to the aid of its users by taking on the bulk of the work. 

For one thing, as recently admitted by the Internal Revenue Agency itself following an interpellation promoted by Cryptosmart, users who hold cryptocurrencies in the wallet of the Italian Cryptosmart exchange are not obliged to indicate the amount of their cryptocurrencies in the RW panel of the tax return. 

Instead, it is the Italian-registered company that performs the “custodial wallet” function that has to do it on behalf of the client, because it holds the private key of the wallet instead of the user himself. 

As for the second benefit, income from staking is in the nature of capital income, so in Italy it is subject to a 26% taxation. Users of Cryptosmart’s staking service do not have to pay these taxes to the treasury, because the exchange takes care of it. 

In fact, Cryptosmart credits users with the rewards of staking activity directly to their wallet held at the exchange, net of the 26% tax. In addition, by 30 June of each year, Cryptosmart sends users the facsimile of the already completed 730 and/or Income tax forms, to be handed over to the CAF or professional of their choice. In this way, it will also be possible to include staking income in one’s tax return and recover the withholdings incurred.

Furthermore, Cryptosmart consultants are able to assist the client with any tax clarification. 

Moreover, the exchange holds all cryptocurrencies deposited by users at a 1:1 ratio, and is not allowed to conduct any transactions with the cryptocurrencies on deposit, not even with reuse or trading. This means that all clients’ funds are always immediately available for withdrawal. 

By contrast, there are several other exchanges that also self-fund their business by using part of the cryptocurrencies deposited by users, thus consequently not guaranteeing the actual ability to fulfill any withdrawal requests from all users. 

The exchange also offers 24/7 support via chat, email and phone. 

The founders of Cryptosmart say: 

“As entrepreneurs living in Italy, we realized that there is a lack of access to cryptocurrencies and digital assets in the country, especially for ordinary people. Finance, to be truly democratic, must be easy to understand and inexpensive. These are the pillars of Cryptosmart.”