Italy is set to go hostile on Bitcoin and the crypto ecosystem with a 42% capital gains tax on the digital currencies in the market
The Italian tax authority says it will increase the capital gain tax on Bitcoin and other cryptocurrencies to 42%. According to a local newspaper, Il Sole 24 Ore, the move is part of the 2025 budget proposal plans.
Shift in Crypto Taxation Framework
Speaking to newsmen, Vice Economy Minister Maurizio Leo said the authority anticipated a notable rise from 26% to 42%. This increase was intended to generate revenue to support families and businesses.
On her part, Italy’s Prime Minister, Giorgia Meloni, assured the citizens that there would be no new taxes in a post on X. This is part of the approval reached by the country’s Council of Ministers. According to Meloni, the tax cut on workers will be structural, while banks and Insurance companies will generate €3.5 billion.
It appears that Italy intends to add to the pool of funds available through an increase in the capital tax gains on Bitcoin and other cryptocurrencies. These cumulative funds will go to healthcare and vulnerable persons to provide better services.
Italy has taxed capital gains above $2,180 (or €2,000) at 26% since the 2023 tax year. This followed the introduction of new cryptocurrency rules that caused a shift in the perception of digital assets. Before then, the authorities considered crypto a foreign currency with lower tax charges.
Will There Ever be a Spot Bitcoin ETF in Italy?
This new development suggests that the Italian government may soon rely heavily on cryptocurrencies as part of its budget funding mechanism. The country has embraced crypto enthusiasts, and there is a legal framework in place for trading assets and making purchases with Bitcoin.
However, crypto companies must register with the Organismo Agenti e Mediatori (OAM) to ensure compliance with anti-money laundering systems.
Experts believe that, given the government’s stance on crypto, the broader financial market will eventually open up. Due to the legal framework defined by the undertakings for collective investment in transferable securities (UCITS) guidelines, there are no Bitcoin ETF products for institutional investors. However, stakeholders remain optimistic that global developments could trigger amendments to laws.
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