Cryptocurrency trading is nowadays being seen as a lucrative option by risk-averse traders who want to make big gains via these digital currencies. Italy has not been untouched by this phenomenon either. Still a rather niche industry, The Bank of Italy estimates that about 2% of Italian households hold modest amounts of crypto.
Nevertheless, several cryptocurrency exchanges have set up shop in the country in the past few years. Mandatory registration for these exchanges and e-wallet service providers was introduced in 2022 and about 90 virtual asset service providers had been approved till early 2023.
That said, choosing the right exchange can be a herculean task in the face of so many choices. You are in the right place if you have been wondering about the best crypto exchange to use in Italy.
Here, you can learn about all the aspects of several major cryptocurrency exchanges functioning in Italy.
Top 8 Cryptocurrency Exchanges Operating in Italy
There are a lot of cryptocurrency exchanges working in Italy making traders in the country spoilt for choice. Let us have a look at some such exchanges and their defining characteristics.
Binance
Binance, the world’s largest cryptocurrency exchange, is of course the first to be mentioned. It is quite a versatile exchange with a cryptocurrency exchange, a research center, an academy and a charity.
Binance’s biggest advantage though is its low trading fees. The highest it generally goes is 0.10% and you can easily get discounts by paying for transactions with the exchange’s native BNB token.
Further, Binance has a great collection of 350+ cryptocurrencies and some excellent staking options with high APRs. It has also implemented 2-factor authentication(2FA) and data encryption for security. There are certain opt-in features such as IP address whitelisting and API access control as well for additional security.
Features
✔️Has 350+ cryptocurrencies available
✔️Mandatory KYC verification
✔️2FA, data encryption and address whitelisting for security
Pros and Cons
✅Great selection of coins ❌Regulatory problems in several
✅Complies with KYC norms countries
✅Educational material on Binance ❌Cluttered interface
Academy ❌Major hacking incident in the past
✅Multiple order types supported
Trading Fees
Binance trading fee schedule
Customer Reviews
Binance works smoothly as an exchange
Binance may refuse to give access to information
Why We Picked It
Binance is a well-known exchange with several trading options-whether in terms of coins available or the types of orders supported. It is fully compliant with the KYC norms of the territories it operates in and even has extensive learning material to help you begin your journey.
Coinbase
Coinbase is another great contender among cryptocurrency exchanges. It is a publicly traded company and in fact, was the first major crypto business to be listed on NASDAQ. Hence, you can rest assured that there are obligations related to financial transparency that Coinbase has to adhere to.
Coinbase has two versions- a basic one and a Pro one. The basic version facilitates normal crypto buying and selling while the Pro version also has charting and market tracking features among other things. Coinbase also has an in-built wallet where you can store your crypto and NFTs.
For security reasons, Coinbase has mandatory 2FA and users are auto-enrolled for it. Passwords are irreversibly hashed and a Coinbase Vault is available for additional security of funds.
Features
✔️Publicly traded business
✔️Has 100+ cryptocurrencies available
✔️Advanced tools on the Pro version
Pros and Cons
✅Decent coin collection ❌Expensive trading fees
✅Financial transparency ❌Takes high commission for staking
✅Native crypto wallet ❌Customer service is not very good
✅Learn to Earn scheme
Trading Fees
Coinbase trading fees elaborated
Customer Reviews
Coinbase is a seamlessly working exchange
Coinbase has rather poor customer support
Why We Picked It
Coinbase is a simple and easy-to-navigate exchange if all you want to do is buy or sell some crypto assets. If you want more advanced features than that, Coinbase Pro has you covered.
Kraken
Kraken is another US-based exchange that’s been in the game for a long time. From just Bitcoin and Litecoin, it has come a long way to now having 185+ cryptocurrencies available for trading.
Kraken also has a basic and pro version. While the pricing on the basic version is dynamic, Kraken Pro uses the conventional taker-maker model for determining fees. On average though, Kraken has quite low spreads and hence, the average cost per trade is not very high.
The exchange is ISO 27001 certified and employs 2FA for security. It uses SSL encryption and even encrypts emails for secure communication.
Features
✔️One of the oldest exchanges
✔️Has over 185 cryptocurrencies available
✔️2FA, SSL encryption and PGP signature for security
Pros and Cons
✅Satisfactory coin collection ❌Higher fees on Kraken basic version
✅High level of liquidity ❌Loss of funds due to hacking incidents
✅Low spreads
✅Great staking rewards
Trading Fees
Kraken Instant Buy fees elaborated
Kraken Pro trading fee schedule
Customer Reviews
Kraken provides good service
Kraken’s verification process is lengthy
Why We Picked It
Kraken is a reliable exchange with products suitable for both beginners and experienced traders. You can take advantage of the low fees on Kraken Pro and dip your toes into crypto staking and earn some interest on your holdings.
Crypto.com
Crypto.com is a Singapore-based exchange that has been rapidly expanding in the past few years. Besides its trademark mobile app, it now also has a prepaid Visa card, staking options for 35+ cryptocurrencies, crypto loans and a DeFi wallet.
Crypto.com has over 250 cryptocurrencies available for trading at very low fees. Traders who have staked the exchange’s native CRO token can get further rebates and discounts as per the amount staked by them.
It keeps all the user funds in offline storage for safety and the same is also insured. The Crypto.com platform has integrated the Ledger Vault, Hardware Security Modules and Multi-Signature Technologies. It also keeps the users’ fiat funds in regulated custodian bank accounts.
Features
✔️Mainly for trading from mobile devices
✔️Native token is called Cronos(CRO)
✔️Has over 250 cryptocurrencies for trading
Pros and Cons
✅Enables on-the-go trading ❌Higher fees for non-CRO holders
✅Excellent staking opportunities ❌Average customer support
✅DeFi wallet available ❌Unsatisfactory learning material
✅Robust security architecture
Trading Fees
Crypto.com trading fees schedule
Customer Reviews
Crypto.com app is easy to use
Difficulties with withdrawals on Crypto.com
Why We Picked It
Crypto.com is for you if you trade primarily from your mobile. In addition to crypto trading, it offers products such as a prepaid Visa card, an earnings calculator to calculate staking interest and a non-custodial DeFi wallet.
eToro
eToro, which was founded in 2007 in Israel, is not strictly a cryptocurrency exchange. Its main purpose is to facilitate social trading and hence, offers 3,000+ assets for trading and investment including some cryptocurrencies as well.
When you buy or sell cryptocurrency on eToro, you have to pay a 1% fee. Similarly, crypto-to-crypto conversions are charged a 0.1% conversion fee.
eToro is a well-established platform and was one of the first places to offer copy trading. You can just copy the strategies of high-performing traders without worrying about research on market trends or complex strategies.
In Europe, eToro is regulated by the Financial Conduct Authority(FCA) in the UK and the Cyprus Securities and Exchange Commission(CySEC) in Cyprus. It uses state-of-the-art monitoring tools and does not allow any of its employees to transfer crypto out of the cold storage.
Features
✔️Social trading and investment company
✔️Has more than 75 cryptocurrencies available
✔️Demo trading account with $100k for practice
Pros and Cons
✅Heavily regulated platform ❌Less cryptocurrencies available
✅Multiple asset types supported ❌Expensive crypto purchases
✅Copy trading feature
✅Debit card deposits are free
Trading Fees
eToro fees for crypto buying and selling
The eToro wallet fees
Customer Reviews
eToro offers dedicated account managers
eToro has high fees and can be hard to navigate
Why We Picked It
eToro is a good option if you want to keep your entire investment portfolio in one place. It is a regulated platform that gives you the option of investing in multiple asset types such as stocks, ETFs and cryptocurrencies.
Bybit
Bybit is another centralized exchange with some unique features and assets. It is a multi-lingual exchange and offers its services in over 16 languages. Apart from spot trading, it also supports derivatives trading and is the largest USDC Options marketplace.
Bybit has a VIP programme where the VIP tiers get several perks including lower trading fees. For example, the highest Pro level accounts have to pay zero maker fee and only a 0.02% taker fee.
Bybit gives you the option of choosing between fixed-term and flexible products to customize your savings plan. All the products on offer have competitive and guaranteed APYs.
Features
✔️Has over 280 spot trading pairs available
✔️USDC and USDT as collateral for perpetuals contracts
✔️World’s biggest USDC Options market
Pros and Cons
✅Less than 0.1% trading fee ❌Unverifiable trade volume stats
✅Spot grid bots to automatically
execute trades
✅Insurance fund for traders
Trading Fees
Bybit trading fees schedule
Customer Reviews
Transactions are processed quickly on Bybit
Bybit promotes risky leverages by traders
Why We Picked It
Bybit is a slick and easy-to-use platform that supports multiple order types. There is no dearth of trading options on Bybit and you can even test out strategies on the testnet site first if you want to.
Uphold
Uphold is a multi-asset platform launched in 2015. This means that in addition to cryptocurrencies, it also enables trading in traditional fiat currencies and precious metals such as gold and silver.
Uphold is a little different from other exchanges in that it does not charge any commission for trading but does charge a spread for the same. For cryptocurrencies like BTC and ETH, the spread is generally 1.5% in Europe.
You can also stake several popular cryptocurrencies on Uphold and earn rewards for it. There is a “Cryptionary” that teaches you about many terms associated with cryptocurrency trading and the crypto world in general.
2FA and strong passwords are standard on Uphold. In addition, it also conducts regular security audits and penetration tests and runs a Bug Bounty program to encourage users to report security vulnerabilities in the system.
Features
✔️Supports trading in cryptocurrency, fiat currency and precious metals
✔️Over 250 cryptocurrencies available
✔️Regular audits and pen tests and bug bounty program for security
Pros and Cons
✅Adequate crypto collection ❌Expensive spreads
✅Low minimum deposit ❌No equity trading in Europe
requirements
✅Free deposits and withdrawals
Trading Fees
Uphold fees explained
Customer Reviews
Uphold has a minimalist design and is easy to navigate
Withdrawals can be difficult on Uphold
Why We Picked It
Uphold has a large variety of cryptocurrencies including stablecoins. It also enables trading in forex, gold, and silver. Here, cross-asset trading is also possible. For example, you can directly swap BTC for gold or any other stock without first converting it into cash.
Anycoin Direct
Anycoin Direct is not strictly a cryptocurrency exchange but more of a crypto broker. Based out of the Netherlands, it caters primarily to the European market. It was created with the goal of making crypto easy for everyone and hence, has a very simple and straightforward interface.
Committed to this goal, Anycoin Direct 2.0 launched in 2021 features a step-by-step guide to help traders in buying and selling cryptocurrency. A smart support assistant and in-depth guides for individual cryptocurrencies have also been added.
Anycoin Direct does not charge maker or taker fees but instead takes a service fee as a margin for providing its services.
Features
✔️Caters exclusively to the European market
✔️65+ cryptocurrencies available
✔️Does not use maker-taker system
Pros and Cons
✅Supports several payment ❌Limited cryptocurrencies available
methods ❌No native crypto wallet
✅Easy registration process
✅Good customer support
Trading Fees
Anycoin Direct fees explained
Customer Reviews
Anycoin Direct has a helpful customer service
Verification can be tedious on Anycoin Direct
Why We Picked It
Anycoin Direct is for you if you want to trade on a Europe-based exchange. Its registration process is simple and it has a very responsive support system to help you along at every step.
Top 5 Decentralized Cryptocurrency Exchanges in Italy
If the idea of handing over your personal information to a crypto exchange makes you iffy, you can perhaps go for a decentralized exchange(DEX) if you can navigate them without any problem.
UniSwap
UniSwap is the first name that pops up when we talk about DEXs. It has a very user-friendly design and you can quickly get a hang of it even if you have never used a DEX. You don’t even need to sign-up and can just connect your crypto wallet to trade.
UniSwap is compatible with most major crypto wallets and since it is built on Ethereum, you get access to loads of ERC-20 tokens. You can also deposit your crypto into UniSwap’s liquidity pools and earn income on them.
This exchange has frequently updated its versions and in the v3 introduced in 2021, UniSwap shifted to a fee structure consisting of three tiers of 0.05%, 0.30% and 1%.
Features
✔️Uses Automated Market Maker(AMM) model
✔️Has a native token UNI
✔️Three-tier fee system
Pros and Cons
✅ERC-20 token trading ❌Network congestion issues
✅Owners retain control over ❌Exorbitant gas fees
assets and keys
✅Anonymous trading
✅Earn income via liquidity pools
Trading Fees
UniSwap trading fees explanation
Customer Reviews
UniSwap is a fine DEX
UniSwap has no official complaint registration mechanism
Why We Picked It
UniSwap is one of the most popular and perhaps the most beginner-friendly DEX out there. It gives access to a large number of ERC-20 tokens and charges quite reasonable fees depending on the nature of the swap pair.
PancakeSwap
Like UniSwap, PancakeSwap is also a DeFi project albeit one that is built on BNB Chain and not the commonly used Ethereum. Here, you get to swap a variety of BEP-20 tokens and a limited number of ERC-20 tokens as well.
Further, PancakeSwap has the advantage of being free from the problems of high gas fees and network congestion often faced by Ethereum-based DeFi apps. It also has features like Initial Farm Offerings(IFOs), lottery programs and yield farms to deposit your crypto assets in liquidity pools.
For trading on PancakeSwap, you have to pay a flat 0.25% fee per transaction.
Features
✔️Uses Automated Market Maker(AMM) model
✔️Native BEP-20 token is called CAKE
✔️Has a dedicated syrup pool for CAKE staking
Pros and Cons
✅Facilitates BEP-20 token
trades
✅Ingenious products ❌Problem of phishing and other scams
✅StableSwap for stable pair ❌Lack of customer support
trades
✅Community governance by
CAKE holders
Trading Fees
PancakeSwap trading fees breakdown
Customer Reviews
PancakeSwap is a great DeFi project
PancakeSwap may have low-quality coins
Why We Picked It
PancakeSwap is an interesting exchange with some creative products and programs. You can participate in whatever catches your fancy. The fee structure here is very simple and CAKE token holders even get to participate in the platform’s governance.
dYdX
dYdX is another DEX that was developed on Ethereum. It is a non-custodial platform that is primarily meant for perpetuals trading. However, it still supports spot and margin trading.
dYdX has pretty much no gas fee and zero trading fees on trades below $100,000. Even beyond that, the fee is quite low and ranges from 0.005% to 0.020% for maker fees and 0.025% to 0.050% for taker fees.
dYdX can be accessed from multiple devices and provides fast trade confirmations and quick withdrawals. It has also employed StarkWare’s Layer 2 solution which ensures greater privacy and security through zero-knowledge rollups.
Features
✔️Platform mainly for perpetuals trading
✔️Implements zero-knowledge rollups
✔️Native token is DYDX token
Pros and Cons
✅Quick withdrawals ❌Limited trading pairs available
✅Free trades upto $100,000
✅No gas fee for perpetuals
Trading Fees
dYdX trading fees breakdown
Why We Picked It
dYdX is different from other exchanges as it does not charge any fees for low-volume trades. If you want to do perpetuals trading at an exchange with low trading fees, dYdX is the right choice.
Curve Finance
Curve Finance is a straightforward DEX mainly for trading stablecoin pairs. It has very low slippage and is, therefore, much more stable than many other DEXs out there. The Curve pools are permissionless and customizable and the fee on them ranges from 0.04% to 0.4%.
Curve Finance, though an Ethereum-based DEX, works with several other chains such as Polygon, Solana, and Arbitrum. It has a native token CRV and those who hold it get to participate in the platform’s governance.
Features
✔️Focuses on stablecoin trading
✔️Native ERC-20 token is CRV
✔️Permissionless and programmable liquidity pools
Pros and Cons
✅High liquidity ❌Not for beginners
✅Compatible with several chains
✅Culture of democratic governance
Trading Fees
Curve Finance trading fees explanation
Why We Picked It
Curve Finance is a very stable exchange. It has a minimalist and no-nonsense design that facilitates stablecoin trades. Though developed on the Ethereum network, it can work with other chains too which is a big advantage.
DODO
DODO, though a DEX developed on Ethereum, does not rely on AMM but instead uses the Proactive Market Maker(PMM) model. This means that it generally has more liquidity and price stability than other exchanges.
While DODO does not have any deposit and withdrawal fees, it does charge a 0.3% fee per trade which after considering everything finally comes around to be 0.6% per trade. In addition, it also has some unique features such as the DODO Vending Machine, NFT Vault and private pools.
Features
✔️Uses the Proactive Market Maker(PMM) model
✔️Cross-chain trading is possible
✔️Native ERC-20 token is DODO coin
Pros and Cons
✅Freedom to create liquidity ❌Does not support fiat currencies
market
✅Free deposits and withdrawals
✅Low slippage
Trading Fees
DODO trading fees explanation
Why We Picked It
DODO has low slippage, no impermanent loss and price stability. It also offers users products such as DODO Vending Machine and private pools. The platform is easy to navigate if you have prior DeFi experience.
Is Cryptocurrency Allowed in Italy?
Well, sort of. There was no clear-cut definition of cryptocurrency in Italian law for a long time though the Law Decree No.135 issued in 2019 did define blockchain and smart contracts.
A general definition of “virtual currencies” is also included in Law Decree No. 90/2017 for anti-money laundering purposes.
However, this does not mean that Italian authorities are completely on board the cryptocurrency train. The Bank of Italy, in 2022, asked banks and financial operators to deal cautiously with cryptocurrencies.
Even the courts have often differed on the nature of cryptocurrencies and whether they are to be considered “goods” or “currency”. For example, The Italian Supreme Court regarded Bitcoin as a financial instrument in an online sale case while the Court of Florence termed them as fungible goods in the case of an insolvent e-wallet.
Cryptocurrency exchanges operating in Italy have to comply with the European Union’s General Data Protection Act(GDPR). Therefore, they are required to take adequate measures to protect the users’ data.
Further, from May 2022, cryptocurrency exchanges have to register with the Register of Financial Agents and Credit Mediators(OAM Register) before they can start operations.
In December 2022, Italy’s budget for 2023 was passed which also included a 26% tax on capital gains from crypto trading over 2,000 euros. The bill has also defined crypto-assets and given taxpayers an option to declare their digital asset holdings as of January 1 and pay a 14% tax.
The EU’s approval of the Markets in Crypto Assets(MiCA) bill also points towards the establishment of a consistent regulatory framework for cryptocurrencies in the EU of which Italy is a member.
Conclusion
MiCA and the 26% tax on crypto assets establish the regulatory stance of the Italian authorities regarding cryptocurrencies. The government has been looking to promote innovation in digital technologies but at the same time is wary of the risks posed by cryptocurrencies to the country’s financial system.
The OAM Register is the first step towards the regularization and regulation of cryptocurrency exchanges in Italy. However, this does not mean that due diligence should be skipped. Crypto trading can be a risky business and one should do proper research before investing money in cryptocurrencies.