According to recent reports, Italy wants to foster the growth of the non-fungible token (NFT) market to nurture the crypto art renaissance. The nation is steeped in history, art, and culture and is considered one of Europe's cultural epicenters.
The predicted growth of the NFT market is stated (1) in the "Italy NFT Market Intelligence & Future Growth Dynamics Databook" published by Research and Markets. This data is based on the findings of the Q2 2022 NFT Survey.
According to the data, the market was expected to expand by 47.6% annually. According to these estimates, the value of the NFT market in Italy will reach 671 million euros.
Forecast for the NFT Market in Italy
It is anticipated that the market will continue to expand at a CAGR of 34.6% from the present time until 2028. In addition, it is anticipated that the value of the NFT expenditure will rise from its current level of $671.4 million.
The value of spending is projected to increase from where it is forecast to be in 2022 to a total of $3633.5 million by 2028. The report gives credit for the expansion of NFTs in Italy to the younger generation of digital artists in that country.
NFTs and Italy Started Quite Early
In July 2021, Cambi Auction House was Italy's first crypto art auction venue. Artists from Italy sold their works at the auction using NFTs as payment. The transaction was a clue that non-financial transfers had a market in Italy and a promising future there.
Additionally, the nation had a meteoric rise in the acceptance of non-fungible tokens (NFTs) and digital crypto arts, which led to the country being dubbed the "crypto art Renaissance." As a direct result of this accomplishment, Tremendous Rare now holds the third spot globally in total gross sales in the primary NFT market.
Investors have been drawn to the newly transformed digital artwork market due to Italy's capacity to offer security to the arts via NFTs. While Federico Clapis was able to sell his work for approximately 44.7 ETH (or $200,000), Hackatao was able to sell his for approximately 185 ETH (or $575,000).
NFTs in Italian Fashin Industry
The hype surrounding NFT spread beyond the realm of the art sector and into the realm of Italian fashion. Dolce & Gabbana has acquired approximately $25.6 million, but Gucci has only managed to secure $11.5 million through NFTs over the past year. Collezione Genesi is an NFTs collection that D&G has released to the public.
On UNXD, the NFTs were made available to the public. Continuous partnerships between Italian fashion brands and NFT platforms are being formed to launch fashion NFTs. These high-end fashion firms produce a variety of one-of-a-kind goods, including garments, footwear, jewelry, and accessories.
Notably, these brands continue to experience expansion in their business due to the accumulation of digital art by enthusiasts, collectors, and other interested purchasers.
Tightening Regulations on Digital Currencies in Italy
On the other hand, Italy will impose a capital gains tax of 26% on crypto currency profits greater than 2,000 euros ($2,062). This is following the nation's effort to strengthen the legislation surrounding digital currencies in the year 2023.
If the proposed legislation is passed and signed into law, taxpayers must report the total value of all digital assets they own as of the first of the year and pay a tax of 14% on that value.