Italy cuts proposed crypto tax rate from 42% to 28%, aiming to support digital asset growth.
Coalition proposes crypto tax reform, seeking a balanced approach for investment appeal and revenue.
New crypto policy may include education and transparency initiatives to guide investors effectively.
The Italian government plans to revise its proposed tax on cryptocurrency gains, lowering it to 28% from an initial suggestion of 42%. This development follows concerns from industry leaders and policymakers, who argue the higher rate could hinder Italy's growing digital asset sector.
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The administration of Prime Minister Giorgia Meloni is anticipated to back this amendment, designed to establish a more equitable tax landscape for cryptocurrency investors.
Industry Feedback Influences Tax Adjustment
That initial 42% tax proposal was one of several elements in a wider fiscal strategy to increase government revenue for the 2025 budget. However, several voices within the cryptocurrency industry cautioned that such a high rate could scare away investment in Italy.
They emphasized that a lower tax could ensure Italy remains competitive in the global digital asset market.
Compromise Aims to Boost Crypto Appeal
The League, a leading party in Meloni's coalition, pushed the amendment to cap the rate at 28%. The adjusted figure still represents a moderate increase from the current 26% rate. However, it is considerably lower than the originally proposed 42%.
Forza Italia, another coalition party, has also proposed additional changes, including a call to remove the tax increase entirely and revoke tax exemptions on gains under €2,000. These proposals reflect a broader commitment within the coalition to support digital asset growth and stability in Italy.
Future Crypto Policy Adjustments Under Consideration
Besides the tax adjustment, the League’s proposal includes forming a permanent working group. This group, comprising representatives from crypto firms and consumer organizations, would work to educate investors and promote transparency in crypto-related taxes.
Finance Minister Giancarlo Giorgetti also suggested the possibility of flexible taxation based on the duration of asset holdings, which could offer investors additional benefits for long-term investments.
These steps indicate a balanced approach to cryptocurrency taxation, aiming to attract investment while generating revenue. Italian lawmakers are expected to review and finalize the proposal, potentially positioning Italy as a more favorable destination for crypto investments in the European Union.
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