What happens if I don't declare cryptocurrencies? Risks, penalties and how to comply

The world of crypto-assets is no longer a free zone. Already with the entry into force of last year's Budget Law and the European MiCA regulation, the Internal Revenue Service has increasingly sharpened tools to monitor digital portfolios. But what are the real risks of not declaring one's assets?

The risks: beyond sanctions, the capital block

Many investors underestimate the so-called 'indirect risk'. The main problem is not only the fine, but the origin of the funds. Without a congruous declaration history (Form RW), it may be impossible to deposit crypto sums into one's current account in the future. Banks, due to anti-money laundering regulations, require certain proof: if you cannot prove how your assets have grown, those funds will remain tied up.

The Penalties

Omission results in two distinct types of penalties, depending on whether you are talking about simple possession or realised gains.

1. Tax Monitoring (RW/W Form): the obligation always exists, even for minimal amounts (e.g. €200) and even if you have never sold or withdrawn anything. There is no exemption threshold of 15,000€ valid for traditional foreign accounts. Penalties for non-monitoring range from 3% to 15% of the undeclared amounts. For example, on an undeclared portfolio of 100,000€, the fine can range between 6,000€ and 30,000€.
2. Plusvalences (RT/T Form) : if you have sold cryptocurrencies earning a profit (above the 2,000€ exemption threshold until 2024, or on any amount from 2025), failure to declare is considered tax evasion. In this case, the penalty can range from 90% to 120% of the tax due.

Controls and Operative Remediation

Thanks to MiCA, European and foreign exchanges automatically share user data with the authorities. However, it is still possible to remedy the situation spontaneously via the 'Ravvedimento Operoso'. This tool allows you to submit a supplementary declaration and pay reduced penalties (up to 1/10 of the minimum) before the Internal Revenue Service initiates an assessment.

Bearing in mind that the Fiscus can go back up to 5 years (or 7 in the case of total failure to declare), regularising your position today is not only a legal duty, but a strategic move to protect your future assets. The advice remains to rely on experienced professionals to correctly reconstruct the movement history and avoid formal errors.

News for 2026

From 1 January 2026, the Italian tax scenario has become even more rigid and complex. The most relevant novelty is the increase of the capital gains tax rate from 26% to 33% for volatile assets such as Bitcoin and Ethereum. This outlines a controversial 'double track' that penalises direct investment as opposed to derivative instruments (such as ETFs), which will remain taxed at 26%.

This manoeuvre, coupled with the definitive farewell to the €2,000 deductible, will also hit small savers: every single euro of gain will have to be declared. Moreover, with the implementation of the DAC8 and CARF directives, the era of anonymity will come to an end: data on balances and movements will be automatically transmitted to the tax authorities by the platforms (CASP). In effect, cryptocurrencies will be equated with bank accounts, disincentivising self-custody and drastically increasing bureaucratic pressure.