The Italian government has taken steps to reduce the proposed capital gains tax on cryptocurrencies from an initial 42% to 28%. The League, one of Prime Minister Georgia Meloni's partners in the ruling coalition, has proposed an amendment in this regard.

This was due to concerns that a higher tax could scare investors away from the fast-growing Italian digital asset market. The amendment, supported by the administration of Prime Minister Meloni, is expected to attract both crypto investors and companies in Italy. This is a League amendment.

The initial plan to raise taxes by 42%, proposed in the October draft budget, was aimed at increasing revenues as part of the economic plan for 2025. However, the high tax rate introduced has raised concerns about Italy's competitiveness in the global #cryptocurrencymarket .

Industry representatives said that the 42% tax rate could negatively affect Italy's attractiveness for businesses related to cryptocurrencies, including blockchain, digital asset trading and investments. They argue that a lower rate will help Italy maintain its attractiveness to both local and foreign investors. It will also contribute to the growth of the financial innovation sector in the country.

Taking into account the proposed amendment, the tax rate of 28% will help Italy get closer to the current rate of 26%, thereby reducing tax pressure on crypto investors. This tax policy is currently awaiting government approval, and it is expected to be approved soon. If the amendment is approved, investors in cryptocurrencies in Italy will receive a clear and possibly favorable set of rules.

Another coalition partner, Forward Italy, has also put forward another amendment to completely eliminate the tax increase. The proposal also aims to eliminate the current capital gains tax exemption for income not exceeding $2,120.

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