Italy plans to reduce cryptocurrency tax increase, or maintain 26%

The Italian government has announced plans to roll back a proposed tax increase on cryptocurrency capital gains following criticism from industry stakeholders and divisions within the ruling coalition. The initial proposal, presented as part of the 2025 budget, sought to increase the tax rate on cryptocurrency gains from 26% to 42%. However, Giulio Centemero, a lawmaker from the co-ruling coalition party, and Federico Freni, deputy finance minister, confirmed on Dec. 10 that the increase would be “significantly reduced” during parliamentary deliberations. The revised budget proposal, which includes a more relaxed stance on cryptocurrency taxation, is expected to be completed and submitted to parliament for approval by the end of December. Lawmakers are under pressure to strike a balance between fiscal prudence and fostering a supportive environment for the burgeoning digital asset industry. Political insiders say the government may ultimately decide to keep the current 26% tax rate unchanged, reflecting widespread concerns within the coalition about the potential impact on Italy’s nascent digital asset industry. (Reuters)