Italy’s finance minister defended a proposal to increase the country’s cryptocurrency capital gains tax to 42%. The minister defended the potential increase by saying cryptocurrencies such as Bitcoin pose a “very high level of risk.”
Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, is defending a proposal to raise the country’s capital gains tax on cryptocurrencies to 42%. Giorgetti has received criticism from lawmakers in his own party but argues that their “very high level of risk” necessitates such an increase.
Italy to Raise Capital Gains Tax on Crypto by 62%
The Italian government recently proposed to hike capital gains tax on cryptocurrencies such as Bitcoin from 26% to 42%. On 16 October, local news outlet Ill Sole 24 Ore reported that Italy’s Deputy Minister of Economy, Maurizio Leo, revealed the plans during a press conference on the 2025 budget. According to reports, the increase is part of a broader campaign to generate additional revenue to support families, young people, and businesses.
Despite pushback from members of his own party, Minister Giorgetti was firm in defending his decision to hike these taxes by 62%. During a Rome banking conference speech, Giorgetti explained that people must distinguish between investments that finance tangible projects and cryptocurrencies, stating that the latter’s value is wholly disconnected from underlying assets.
Minister Giorgetti was adamant in his decision, stating:
“Cryptocurrencies present a very high level of risk.”
Intra-Party Disagreement
Under the 2025 budget, which is still to be approved by parliament and remains subject to change, the hike will reportedly bring in an additional 16.6 million euros ($18.16 million) per year from the current 27 million euros.
While the 62% increase would generate a relatively small level of revenue, the proposal has triggered criticism from within the Minister’s League party.
Lawmaker and member of Italy’s Chamber of Deputies, Giulio Centemero, said such a hike would be “counterproductive,” demanding further discussion with market players over the matter.
Italian Lawmakers Increase Focus on Crypto Amid MiCA Implementation
The proposed increase comes after the Italian government raised the capital gains tax on cryptocurrency trading for more than 2,000 euros to 26% in 2023. Italy also announced plans to adopt stricter crypto oversight measures over the risks tied to these assets. According to a draft decree, the country plans to introduce stricter crypto surveillance mechanisms and tougher sanctions for insider trading and market manipulation.
Italy’s increased focus on cryptocurrencies comes as the EU implements MiCA, the world’s first comprehensive set of rules for crypto regulation. MiCA (Markets in Crypto-Assets) requires crypto forms to be authorized in the EU to serve customers in the bloc and to comply with additional safeguards against money laundering and terrorism financing.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
