Italy’s Finance Minister, Giancarlo Giorgetti, is standing by a proposal to raise the nation’s capital gains tax on cryptocurrencies like Bitcoin from 26% to 42%, citing the “very high level of risk” these assets pose.
The increase, announced on October 16 by Deputy Minister of Economy Maurizio Leo, aims to support funding for families, youth, and businesses as part of Italy’s 2025 budget plan. The proposal, expected to generate an extra €16.6 million annually, has faced resistance from lawmakers, including Giorgetti’s League party colleagues, who call it “counterproductive” and seek further discussion with industry stakeholders.
During a recent banking conference in Rome, Giorgetti highlighted the importance of distinguishing between investments that fund real projects and cryptocurrencies, which lack asset-backed value.
The proposed tax hike aligns with Italy’s recent trend toward stricter crypto oversight, which saw the capital gains tax for crypto transactions above €2,000 rise to 26% in 2023. The government is also introducing stronger regulations around market manipulation and insider trading.
This comes as the EU rolls out its regulatory framework, MiCA (Markets in Crypto-Assets), which mandates crypto firms serving EU customers to obtain authorization and implement measures against money laundering and terrorism financing.
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