Italy Battles Crypto Tax Criticism

Italy's economy minister Giancarlo Giorgetti defends raising cryptocurrency capital gains tax from 26% to 42% amid criticism. Despite potential revenue generation of 16.7 million euros, critics from his own party, including Giulio Centemero, argue the hike could be counterproductive. The move aligns with EU's crypto regulation efforts.

Italy's economy minister, Giancarlo Giorgetti, stands firm on increasing taxes on cryptocurrency capital gains despite facing opposition within his party. He emphasizes the distinction between tangible investments and the highly volatile nature of cryptocurrencies.

In the 2025 budget proposal, set for parliamentary approval by December, the Treasury plans to raise the tax rate on crypto capital gains to 42% from the current 26%. This measure, if implemented, is projected to bring an additional 16.7 million euros annually.

The proposal has sparked debate, notably from lawmaker Giulio Centemero, who calls for dialogue with market stakeholders, arguing that the move might be "counterproductive." This aligns with the EU's comprehensive crypto regulations under the MiCa framework.

(With inputs from agencies.)