The Italian government is reviewing its legislation to reduce the crypto capital gains tax rate from 42% to 28%.
Proposal to Reduce Tax
The government initially proposed a 42% tax on crypto capital gains, affecting Bitcoin investors and traders. This was part of Italy’s 2025 budget plan. However, on November 7, Economy Minister Giancarlo Giorgetti expressed his openness to revisiting this increase.
Political Parties' Objections
The tax proposal faced criticism within Giorgetti’s League party. Italian lawmaker Giulio Centemero termed the decision "counterproductive" and advocated for in-depth discussions with market stakeholders. The coalition party proposed a permanent working group, including crypto companies and consumer associations, to educate investors.
European Crypto Asset Initiatives
Meanwhile, the Bank of Italy is preparing guidelines for implementing the EU’s 'MiCA' regulation. Governor Fabio Panetta stated that these guidelines will ensure MiCA’s practical application and protect cryptocurrency holders. Tax initiatives like Italy’s are part of broader EU efforts to tighten digital asset regulations.
Italy is moving towards revising its cryptocurrency tax framework, indicating a more balanced regulatory approach in the sector.
