According to the 2025 budget, the Treasury intends to increase the tax on capital gains from cryptocurrencies, such as bitcoin, from 26% to 42%.
According to reports, Italy’s economy minister expressed his willingness to reevaluate the proposed tax increase on crypto capital gains on Thursday. Legislators within his own party exerted pressure on him to abandon the initiative.
According to Reuters, Minister Giancarlo Giorgetti expressed his willingness to explore alternative taxation methods for individuals who maintain investments in their portfolios.
According to the 2025 budget, the Treasury intends to increase the tax on capital gains from cryptocurrencies, including bitcoin, from 26% to 42%. Parliament intends to authorize this budget by the conclusion of December.
Local reports indicate that the Council of Ministers of Italy has authorized the implementation of this new tax, which is intended to leverage investment profits to fortify the economy.
An increase in capital gains taxes on digital assets is reportedly being considered by Chancellor Rachel Reeves in the United Kingdom, which is also investigating similar adjustments.
The Italian government intends to resolve fiscal deficits by increasing revenue through this tax increase to support initiatives for families, youth, and businesses. This action is also consistent with the forthcoming implementation of the Markets in Crypto-Assets (MiCA) regulation, which aims to establish a unified regulatory framework for digital assets throughout the European Union.
Reuters reported that Giorgetti’s League party experienced a backlash as a result of the tax rate increase. Giulio Centemero, a lawmaker, criticized the decision as “counterproductive” and urged for comprehensive discussions with market participants regarding the matter.
Historically, Italy has lagged behind countries such as the United Kingdom and Germany in terms of cryptocurrency activity. Nevertheless, there has been a significant surge in the number of individuals who are using cryptocurrencies in recent times, with an estimated 3.6 million Italians actively engaging with digital currencies.
This increase is not solely due to speculative investments; rather, it is the result of practical crypto transactions, which suggest that digital currencies are now more widely recognized as a legitimate financial instrument.
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