In October, the Italian government, through the Ministry of Economy and Finance (MEF), had proposed to increase the taxation on crypto capital gains to 42%.
If the measure had been definitively approved, it would have been the highest percentage in Europe.
Such decision had triggered a strong reaction from the Italian crypto sector, because it rightly considered it punitive towards Italian investors, and the sector itself.
In Italy, there are more than a million people who own cryptocurrencies, and several companies that operate specifically in the crypto sector.
The U-turn on crypto taxation at 42%
It should be noted, however, that several political forces belonging to that same majority supporting the government had immediately mobilized to try to do something.
In fact, already at the beginning of November, there was a concrete start to hypothesize a possible modification to the measure proposed by the MEF.
Yesterday, the honorable Giulio Centemero, from the Lega, announced on his official X profile that the Budget Committee of the Chamber of Deputies approved the amendment to the Budget Law specifically concerning the taxation of crypto capital gains.
Appena approvati da commissione Bilancio alla Camera dei deputati gli emendamenti alla legge di Bilancio:
1) sulla tassazione plusvalenze criptoattività, portando l’iniziale aliquota del 42% al 26% per il 2025 e al 33% per il 2026, a fronte dell’abolizione della non tax area e di…
— Giulio Centemero (@GiulioCentemero) December 17, 2024
This amendment reduces the initial rate of 42% included in the text of the 2025 Budget Law to 26% for 2025, while it sets it at 33% for 2026. Additionally, it abolishes the non-tax-area below €2,000, and introduces a revaluation at 18%.
Centemero adds that already from the next Milleproroghe decree they will work on the 2026 rate, to try to reduce it from 33%.
Now it will be up to the Chamber to approve or reject the amendment, but it seems there is a large favorable majority that includes in fact all the government forces but also part of the opposition. This leads to the belief that an approval of this amendment is much more likely than its rejection.
Who wanted the increase of crypto taxation to 42%
The really strange thing is that there doesn’t seem to be anyone in favor of such an increase.
Therefore, the question arises spontaneously: who wanted it?
Apparently, it was not the government, because it is the same one that is now in favor of eliminating it.
It wasn’t even the forces of the majority, because all three main parties supporting the government (FdI, Lega, and FI) have expressed their opposition.
The measure was developed and included in the text of the draft law for the 2025 Budget by the ministry. It was also explicitly announced at a press conference by Deputy Minister Leo, a member of FdI (Minister Giorgetti is from the Lega).
So only the MEF was in favor, while practically everyone else, including the opposition, was largely against.
According to what was revealed by the honorable Centemero, that regulation was inserted into the text of the bill proposal by some unspecified external subject.
Although there are still no certainties about it, the hypothesis that circulates the most is that the suggestion to include the increase to 42% taxation on crypto capital gains in Italy was made by the only state agency that has continuously attacked cryptocurrencies for several years now.
The comments
Many of the representatives of the main Italian companies providing crypto services have expressed their satisfaction with this outcome, and they have also congratulated those politicians who responded to their appeal and then worked to solve the problem.
Although in theory it is not yet 100% certain that the increase will be eliminated, it now seems really unlikely that the amendment eliminating it will not go through.
In particular, the CEO of Binance Italy, Gianluigi Guida, commented by saying that the decision to maintain the 26% tax on capital gains from crypto-assets can ensure, albeit within certain limits, the operational continuity of a rapidly evolving sector, without confining the growth opportunities of the Web3 ecosystem.
He said:
“I wish to express our gratitude towards the Italian Institutions and their representatives, who have committed to finding a balance aimed at not stifling innovation. Thanks to their efforts, it has been possible to initiate a constructive dialogue, which we are confident will lead to identifying solutions to support the long-term growth of the sector”.
Guida also points out that, with the mobilization of the main Italian crypto entities that have begun to engage in dialogue with government forces, they have observed an openness towards Web3 from Italian institutions, which has favored open, transparent, and constructive discussions.
In fact, he added:
“We hope that this can be the starting point for an increasingly continuous dialogue and mutual collaboration with the institutions: our country has the potential to fully grasp and embrace the possibilities of a future marked by digital, positioning itself as a promoter of technological innovation and blockchain”.
However, he also expressed concern about the planned increase to 33% of the rate starting from 2026, also because it would introduce a tax disparity compared to other similar types of investment, and it would risk compromising Italy’s competitiveness in this sector, contributing to the brain drain abroad.
The game is therefore not yet closed.