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The Italian government recently announced a plan to increase the capital gains tax on bitcoin and other cryptocurrencies from 26% to 42%. This proposal, part of broader fiscal measures to support election pledges and reduce Italy’s fiscal deficit, has raised concerns among cryptocurrency investors and industry leaders. The timing also aligns with the upcoming implementation of the European Union’s Markets in Crypto-Assets Regulation (MiCA), which aims to harmonize cryptocurrency rules across EU member states.
In response to criticism, sources told Bloomberg that Prime Minister Giorgia Meloni’s administration is considering amendments to the initial proposal. The League, a coalition partner, suggested lowering the tax increase to 28% instead of 42%, to prevent an investor exodus and maintain Italy’s position as a competitive crypto market.
“They realized they were going to lose even more wealthy people. And backtracked,” Spencer Hakimian, Founder of Tolou Capital Management on X, wrote in a Nov. 12 social media post on X.
