Italy’s Economy Minister Giancarlo Giorgetti announced he may reconsider the proposed tax increase on cryptocurrency capital gains after lawmakers from his own party, the League, pushed back on the plan. Giorgetti’s statement on Thursday hinted at alternative tax structures for long-term crypto investors.
The initial proposal in the 2025 budget seeks to increase the tax on crypto gains from 26% to 42%, aimed at raising revenue to support family, youth, and business initiatives, as well as reducing fiscal deficits. Italy’s Parliament is expected to decide on the budget by the end of December.
Crypto Tax Hike Receives Pushback
The Council of Ministers approved the tax proposal, intending to channel profits from crypto investments into the economy. Lawmaker Giulio Centemero criticized the tax as “counterproductive,” urging further consultation with industry stakeholders.
This comes amid Italy’s preparation for the EU’s Markets in Crypto-Assets (MiCA) regulation, designed to establish a standardized framework for digital assets across the European Union.
Rising Crypto Activity in Italy
Italy has seen a significant increase in crypto engagement, with over 3.6 million Italians now active in digital currency transactions. Beyond speculation, these transactions are indicative of growing acceptance of digital assets as financial tools.
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