Italian lawmakers are challenging proposed tax hikes on cryptocurrency capital gains and an expansion of the country’s digital tax. The government’s plans, part of Prime Minister Giorgia Meloni’s 2024 budget, include raising cryptocurrency taxes from 26% to 42% and applying digital levies to smaller firms. However, coalition members are advocating for less drastic measures, calling for a reduced crypto tax of 28% and preserving revenue thresholds for the digital tax.
Italian Economy Minister Giancarlo Giorgetti has signaled openness to revising the cryptocurrency tax proposal, emphasising the need for a balanced approach. Meanwhile, Forza Italia, a co-ruling party, is pushing to keep Italy’s web tax focused on large tech companies like Meta, Google, and Amazon, arguing that expanding it to smaller businesses could harm local enterprises.
Italy introduced a 3% digital tax on major tech firms in 2019, but new proposals to eliminate revenue thresholds have sparked concerns of unfair burdens on small and medium-sized businesses. The debate reflects broader tensions over balancing revenue generation with economic fairness and international relations, particularly with the US, which has criticised the digital tax’s impact on American firms.
Paxos, a prominent blockchain infrastructure firm, has announced plans to acquire Finnish stablecoin issuer Membrane Finance, pending regulatory approval. The acquisition will grant Paxos a sought-after Finnish Electronic Money Institution licence, allowing the company to operate across 30 European countries under EU regulations.
Membrane Finance, known for its EUROe and eUSD stablecoins, launched its euro-pegged stablecoin in February 2023 but saw modest initial demand. Paxos, which already issues dollar-backed tokens like the Pax Dollar (USDP) and gold-backed cryptocurrency PAXG, had not yet ventured into the euro stablecoin market. This deal marks Paxos’ first step into offering euro-pegged digital assets.
The acquisition comes as the European stablecoin market faces tighter oversight under the Markets in Crypto-Assets (MiCA) Regulation, which took effect in July. Paxos sees this move as an opportunity to expand its reach and cater to growing stablecoin demand in Europe, further solidifying its global presence in the digital currency space.
Michael Saylor, the executive chairman of MicroStrategy, is set to deliver a compelling three-minute presentation to Microsoft’s board of directors advocating for a Bitcoin investment. This announcement followed his participation in VanEck’s X Spaces on 19 November, where he shared insights into the proposal. Saylor plans to encourage the board to allocate a portion of their substantial $78 billion cash reserves into Bitcoin.
Microsoft, one of the largest tech firms globally, has no current exposure to Bitcoin or other cryptocurrencies, despite its significant investments in companies like OpenAI. Saylor highlighted that only 1.5% of Microsoft’s stock value is linked to intangible assets, with most of it focused on quarterly earnings. The December’s voting items may include a decision influenced by Saylor’s presentation, potentially paving the way for a revolutionary shift in the company’s financial strategy.
The potential impact of Microsoft embracing Bitcoin could be monumental. Saylor noted the remarkable rise of MicroStrategy’s shares since adopting Bitcoin, with a 2,735% increase over five years. Institutional and corporate adoption of Bitcoin is accelerating, and Saylor believes Microsoft could set a transformative example by joining the trend.
California-based AI startup Enfabrica has raised $115M in a funding round to tackle one of the field’s most pressing challenges, enabling vast networks of AI chips to work seamlessly at scale. The company, founded by former engineers from Broadcom and Alphabet, plans to release its new networking chip early next year. This chip aims to enhance efficiency by addressing bottlenecks in how AI computing chips interact with networks, a problem that slows down data processing and wastes resources.
The startup claims its technology can scale AI networks to connect up to 500,000 chips, significantly surpassing the current limit of around 100,000. This breakthrough could speed up the training of larger AI models, reducing time and costs associated with unreliable or inaccurate outcomes. “The attributes of the network, like bandwidth and resiliency, are critical for scaling AI efficiently,” said Enfabrica CEO Rochan Sankar.
Investors in the funding round included Spark Capital, Maverick Silicon, and corporate backers like Arm Holdings and Samsung Ventures. Nvidia, an industry leader in AI chips, also participated, signaling strong support for Enfabrica’s mission to optimise AI infrastructure.
EU antitrust regulators are expected to announce their decision on Nvidia’s proposed acquisition of Israeli AI startup Run by 20 December. The European Commission has flagged concerns that the $700 million deal, announced in April, could harm competition in the AI and chip sectors. Nvidia must gain regulatory approval before proceeding.
The watchdog will either approve the deal, with or without conditions, or open a four-month investigation if concerns persist. The scrutiny reflects broader fears about ‘killer acquisitions’, where large firms acquire startups to stifle innovation.
Nvidia‘s processors are crucial for AI applications, including tools like ChatGPT, making this acquisition significant for the tech and AI industries. The decision will have implications for competition in rapidly evolving AI markets.
The United States Department of Justice (DOJ) is reportedly pushing for Alphabet’s Google to divest its Chrome browser, escalating efforts to curb the company’s alleged monopolistic practices in digital markets. This follows a prior ruling that Google illegally dominated the search market. The DOJ also plans to address Google’s control over AI and the Android operating system.
Google, which commands two-thirds of the global browser market, denies the claims, arguing that its success stems from user preference and robust competition. It also criticises the DOJ’s proposals as extreme and potentially harmful to consumers. Prosecutors have suggested a range of remedies, including ending exclusive search agreements with companies like Apple or enforcing Chrome’s divestiture if market competition does not improve.
A trial to finalise the remedies is set for April, with a ruling expected by August 2025. Google intends to appeal any decision to divest Chrome, citing the browser’s integral role in its ad revenue and user experience.
Bitcoin has surged 5.8% in the past 24 hours, reaching a new all-time high (ATH) of $97,750. Its market cap now stands at $1.93 trillion, holding a dominant 57.9% share of the crypto market. Trading volume has also exceeded $85 billion, reflecting the strong bullish momentum.
A poll on Polymarket suggests Bitcoin has an 83% chance of hitting $100,000 before December, further fuelling optimism. This price surge has contributed to the global crypto market reaching an ATH of $3.33 trillion. Additionally, pro-crypto figures in the US government raise expectations of crypto-friendly regulations under a potential second term for Donald Trump.
CryptoQuant CEO Ki Young Ju likened this year’s momentum to the 2020 bull run, citing strong whale accumulation and significant over-the-counter deals as major factors. He also pointed to the Bitcoin halving in April, which reduced miner rewards and pushed prices higher to ensure miner profitability.
The recent launch of spot Bitcoin exchange-traded fund (ETF) options in the US has further boosted Bitcoin’s price, with BlackRock’s iShares Bitcoin Trust receiving approval from the SEC. The introduction of these ETFs is expected to increase demand, allowing investors to better manage risk while participating in the Bitcoin market.
Dell Technologies and Iron Bow Technologies have agreed to pay over $2 million each to settle allegations of overcharging the US Army under a computing contract, according to the Justice Department.
Dell will pay $2.3 million, while Iron Bow will pay $2.05 million to resolve claims of violating the False Claims Act. The DOJ accused the companies of submitting non-competitive bids that inflated costs under the Army Desktop and Mobile Computing contract.
The settlement highlights government efforts to enforce accountability in defence contracts, ensuring fair pricing and compliance with procurement laws.
Santander has introduced its digital bank, Openbank, in Mexico, marking a significant move into the country’s fast-growing fintech market. The launch includes a website and mobile app, offering a fully digital banking experience. Customers on the pre-registered waiting list are the first to gain access.
Openbank, already operational in Spain, Germany, Portugal, and the Netherlands, is Europe’s largest digital bank by deposits. The Mexican rollout capitalises on a growing demand for digital financial services, particularly among the unbanked population and dissatisfied traditional banking clients.
The service includes a savings account offering a competitive 12.5% annual return, aligning with local fintech trends led by rivals like Nubank. Openbank’s head, Petri Nikkila, emphasised the potential for digital banking in Mexico, aiming to attract customers seeking competitive financial products.
Meta has hired Clara Shih, previously Salesforce’s CEO of AI, to lead its newly formed Business AI group. Shih announced her move in a LinkedIn post, stating that her team aims to develop cutting-edge AI tools to help businesses on Meta platforms like Instagram, Facebook, and WhatsApp. The initiative seeks to empower businesses by making AI accessible and effective in driving growth.
The Business AI group will focus on leveraging Meta’s Llama language models to offer solutions for advertising and content creation. While specific tools have not been revealed, AI-generated ad creation is a likely feature. Meta’s strategy hinges on enhancing its platforms with AI tools, boosting ad engagement, and increasing revenue without directly charging for AI products.
Shih’s appointment comes amid intensified competition in enterprise AI. Salesforce, where Shih previously worked, has struggled to fully capitalise on the AI boom. Shih now has an opportunity to steer Meta’s efforts in reshaping how businesses interact with AI, marking a significant shift for the company’s focus on business-oriented innovations.
