Italy has raised its capital gains tax on cryptocurrency investments from 26% to 42%, making it one of the highest rates in the world. The move is part of a broader effort by the Italian government to crack down on tax evasion and money laundering. The new tax rate will apply to all profits made from the sale of cryptocurrencies, regardless of how long they have been held. This is a significant increase from the previous rate of 26%, which was introduced in 2016. The Italian government has justified the tax increase by arguing that it will help to level the playing field between traditional investments and cryptocurrencies. However, critics of the move argue that it will discourage investment in the cryptocurrency market and drive investors to other jurisdictions with more favorable tax rates. It remains to be seen whether the new tax rate will have the desired effect of reducing tax evasion and money laundering. However, it is clear that the Italian government is taking a tough stance on cryptocurrency regulation.