Italy is planning to raise the capital gains tax on cryptocurrency to 42% in order to reduce the fiscal deficit. As the country prepares to adopt the European Union's crypto-assets regulations, the impact on Bitcoin price remains negligible.

Italy's Tax Increase Plans

Italy is discussing increasing the capital gains tax on cryptocurrency to 42% in a bid to reduce the fiscal deficit. According to Bloomberg, the tax rate for Bitcoin holders may double from 26% to 42%. Deputy Finance Minister Maurizio Leo stated that the government is attempting to keep pace with the rapid expansion of cryptocurrency usage. However, there is no clarity on when the new tax will be implemented.

Preparing for EU Crypto Regulations

Italy is also preparing to implement the European Union's crypto-assets regulations. Adoption of this regulation could occur before the year's end. Bank of Italy Governor Fabio Panetta has suggested recommendations on the enforcement of laws related to e-money and asset-referenced tokens. Some experts believe the tax hike might lead to legal challenges on its constitutionality.

Bitcoin Price Remains Unaffected

Despite the news of the potential tax increase, the Bitcoin price remains relatively steady. At press time, Bitcoin was priced at $67,217, down 0.70% on the day. Over the week, Bitcoin has risen 7.9%, reaching levels not seen since the end of July this year. The all-time high of $73,835 was reached in March, 9.5% higher than the current price.

Despite discussions on changing Italy's tax policies, the impact on the cryptocurrency market remains minimal. Italy's plans could reshape the crypto landscape in the country, especially with the looming adoption of EU crypto-assets regulations.