ITALY RAISES CRYPTO CAPITAL GAINS TAX TO 42% AMID MARKET CONCERNS
Italy has announced a major increase in its crypto capital gains tax, raising it from 26% to 42%. This move aims to boost the economy but may discourage crypto investors and reduce participation in Italy's growing crypto sector.
What You Need to Know:
The new tax applies to crypto gains over €2,000 and is part of President Georgia Meloni’s plan to strengthen the national economy. However, investors are concerned about the potential impact on crypto strategies, especially with Italy's inflation rate at just 1.2%.
Bitcoin’s Strong Performance:
Despite the tax hike, Bitcoin continues to climb, reaching $67,546, reflecting strong market sentiment. Institutional interest is growing, with $371 million flowing into Bitcoin ETFs and a 61% rise in derivatives volume.
While Italy tightens its crypto tax policies, the UAE is taking a more crypto-friendly approach, offering VAT exemptions for virtual asset transfers, which could benefit the global market.
