Italy’s largest bank, Intesa Sanpaolo, dipped its toes in the cryptocurrency market, conducting its first Bitcoin (CRYPTO: BTC) purchase worth $1 million, according to a report on Tuesday.
What Happened: Intesa Sanpaolo purchased 11 Bitcoins in what CEO Carlo Messina described as “a test,” Reuters reported, citing an internal memo.
Speaking to reporters at an event, Messina said that the lender had “very limited” room to invest in cryptocurrencies and that the latest trial was conducted to prepare for potential requests for such investments by “sophisticated” clients.
“We tested how to handle any potential requests from clients, but there will anyway be very tight limits and clients will need to prove they understand potential risks,” Massino said.
He also advised individual investors to avoid cryptocurrency investments, stating, “I myself don’t invest in Bitcoin.”
See Also: Shytoshi Kusama Outlines TREAT Token’s Usefulness Ahead Of Launch, Optimistic Whales Buy Up Shiba Inu
With total assets of €949.18 million ($977.40 million), Intesa Sanpaolo is Italy’s largest bank. The company didn’t immediately return Benzinga’s request for comment.
Why It Matters: This development comes in the wake of Italy’s recent change in stance towards cryptocurrencies.
Last month, Italian politicians from the ruling coalition announced a significant reduction in the proposed tax hike on cryptocurrency capital gains following industry criticism and internal disagreements.
The Treasury had initially planned to increase the tax on cryptocurrency capital gains from 26% to 42% under the 2025 budget. However, due to industry protests and internal debates, the rate was reduced to 33%.
Price Action: At the time of writing, Bitcoin was exchanging hands at $97,052.07, up 2.82% in the last 24 hours, according to data from Benzinga Pro.
Image Courtesy: Shutterstock.com
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
