Italy considers lower crypto tax increase

Italy’s government is reconsidering its proposed tax increase on cryptocurrency trades, opting to lower the planned rate from 42% to 28%. This adjustment follows concerns from industry leaders who warned that the steep tax could damage the country’s competitiveness in the growing digital asset sector.

Currently, Italy taxes crypto transactions at 26%, but the government had originally proposed the higher rate to bolster public finances. To strike a balance, Prime Minister Giorgia Meloni’s coalition is supporting amendments, including a 28% cap suggested by the League party. Meanwhile, Forza Italia has proposed exempting gains under €2,000 to encourage wider participation in cryptocurrency.

The revised approach could strengthen Italy’s position in the digital asset market, particularly as the European Union prepares to implement the Markets in Crypto-Assets framework later this year. By adjusting its tax policy, Italy seeks to foster industry growth while maintaining a competitive edge.