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Italy has announced a decision to raise the Bitcoin capital gains tax from 26% to 42%. This move is part of broader measures by the Italian government to fund election promises and reduce the country's fiscal deficit.
"A worse decision could not have been made," said Cryptonomist, Crypto Educator. "Those with significant capital move residence elsewhere and pay less tax elsewhere, which is now nimbly and easily done. This brings even less tax revenue to italy. Those with small capital lose what little incentive they already had to declare, because it is more convenient for them to risk the penalties than to have almost half the profit eaten up with certainty."
On October 18, 2024, Italy revealed its intention to increase the capital gains tax on Bitcoin, sparking concerns among cryptocurrency investors and market participants. The timing of this tax hike coincides with the European Union's preparation to implement its Markets in Crypto-Assets Regulation (MiCA), which aims to standardize cryptocurrency regulations across EU member states.
