The Canadian province of Manitoba and the Italian government have released new draft laws for the cryptocurrency market. European country imposes tax on cryptocurrencies.
Italy announces it will collect tax on cryptocurrency earnings
The European country is taking the first step in the EU with its cryptocurrency taxation scheme. In a proposal submitted along with the country’s 2023 budget, it was announced that a 26% tax would be applied to earnings of more than 2,000 euros. Previously, cryptocurrencies were treated like a foreign currency by Italy’s tax regime. Italy’s decision comes after several global crypto companies prioritized expansion in Europe this year. Bitpanda has recently obtained a business license in Germany. Thus, it was added to the list of registered places, including Italy.
Meanwhile, Binance has been approved as a cryptocurrency exchange in France, Italy, and Spain. Gemini added five countries to its European presence last month. Yesterday it announced that it has also received regulatory approval in Italy and Greece. Portugal announced a similar tax of 28% on profits from the sale of cryptocurrencies held for less than a year, although longer-term held crypto may be tax-exempt. Part of the Italian government’s plans will allow crypto investors to declare their holdings as of January 1, 2022, with a lower rate of 14%.
Canada’s province of Manitoba legalizes debt relief requests for crypto mining
According to local media reports, the Canadian province of Manitoba has set an 18-month moratorium on new crypto mining operations, citing the possibility of the local grid being overwhelmed by new projects. This decision was the latest in a series of jurisdictions to pause or slow approval of new crypto mining operations over concerns that the miners’ burden could negatively impact local communities.
Now the Government will stop new crypto mining operations from connecting to the grid for 18 months. However, 37 existing mining facilities will not be affected. According to reports, miners flock to Canada for its cheap electricity. Manitoba provides the cheapest electricity prices in the country after Quebec.
Finance Minister Cameron Friesen, the minister responsible for Manitoba, said an additional 17 miners had requested to be connected to the grid. He stated that their energy demands will total 371 megawatts (MW). This consumption is roughly half of the production capacity of the Keeyask generating station, which was fully operational earlier in the year. As Cryptokoin.com reported, due to high energy consumption, China decided to restrict mining activities in 2021.
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