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Crypto Tax Hike? Italy Mulls Raising Capital Gains Tax On Bitcoin To 42%

Ash Tiwari
by Ash Tiwari
1 year ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Italian Deputy Economy Minister Maurizio Leo announced today that Italy is considering raising the capital gains tax on Bitcoin (BTC) and other crypto assets from 26% to 42%.

Italy Weighs Higher Bitcoin Capital Gains Tax

At a news conference on October 16, 2024, Leo stated that the Giorgia Meloni administration is contemplating a significant increase in the withholding tax on crypto-related capital gains, moving it from 26% to 42%.

Related Reading: EU Contemplates Bitcoin Ban With New Report? Here’s Why You Should Care

The proposed 16% hike is part of Italy’s new budget bill, approved by the country’s Council of Ministers on October 15, 2024. The broader goal of the bill is to generate resources for youth, businesses, and families.

It’s worth noting that since the 2023 tax year, capital gains exceeding $2,180 have been subject to a 26% tax, following the introduction of cryptocurrency-specific rules aimed at streamlining the tax treatment of digital assets.

Notably, the crypto capital gains tax laws introduced last year marked a significant policy shift from treating digital assets as foreign currency, which attracted lower taxes. 

During the press conference, Leo reportedly said that Italy plans to curtail cash usage to tackle money-laundering and tax evasion.

Italy’s stance on digital assets is not particularly unconventional. Since Bitcoin and other cryptocurrencies largely operate in a regulatory gray area – with perceived risks of money laundering and tax evasion – financial watchdogs worldwide have been cautious when crafting policies for digital assets.

In June 2024, the Bank of Italy and the Consob – the Italian market regulator – joined forces to crack down on illicit crypto use by strengthening anti-money laundering (AML) compliance. 

Italy’s regulatory approach mirrors that of the European Union (EU), as crypto-related crimes continue to rise across Europe. Several countries have introduced strict cryptocurrency regulations to curb the misuse of digital assets for illegal activities.

Strict European Regulations Push Exchanges Out

While digital assets promise greater transparency and speed in financial transactions, their potential for unlawful use has raised concerns among European financial watchdogs. As a result, many exchanges have faced regulatory pressure.

One of the victims of Europe’s stringent crypto regulations is the leading digital currency exchange, Binance. In June 2023, the German financial regulator rejected Binance’s request to offer Bitcoin and other crypto custody services in the country.

In the same month, Binance faced allegations of “aggravated money laundering” in France. The exchange was also accused of offering unauthorized digital asset services to French citizens.  

Related Reading: Binance Blocks Privacy Crypto Trading In France, Italy, Poland, And Spain

Similarly, Binance was also forced out of other European countries, such as the Netherlands and Austria, due to strict regulations around digital assets. 

However, despite the regulatory hurdles, businesses are not shying away from embracing cryptocurrencies wherever possible. 

For instance, in July 2024, Italian luxury sports car manufacturer Ferrari announced extending its crypto payment options – accepting Bitcoin, Ethereum (ETH), and USDC – to its European dealers. BTC trades at $67,430 at press time, down 0.5% in the past 24 hours.

bitcoin
BTC trades at $67,430 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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