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Giancarlo Giorgetti, the Italian Minister of Economy and Finance, has pushed back against critics of a plan to raise the country’s capital gains tax on cryptocurrencies like Bitcoin to 42%.
At a World Savings Day event on Oct. 31, Giorgetti <a data-ct-non-breakable="null" href="https://www.youtube.com/watch?v=d-OHx4b2L80" rel="noopener noreferrer nofollow" target="null" text="null" title="null">said</a> digital assets presented a “very high level of risk,” defending the government’s decision to change the capital gains tax. Italy’s Council of Ministers <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/italy-bitcoin-increase-capital-gains-tax-26-to-42" rel="noopener noreferrer nofollow" target="null" text="null" title="null">approved a budget bill</a> to increase withholding taxes for Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>) from 26% to 42%.
<figure><img alt="Cryptocurrencies, Taxes, Italy" src="https://s3.cointelegraph.com/uploads/2024-10/0192e33c-5a26-7d27-b63c-dec68c02b3d0" title="">
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 Italian finance minister Giancarlo Giorgetti at World Savings Day on Oct. 31. Source: <a data-ct-non-breakable="null" href="https://www.youtube.com/watch?v=d-OHx4b2L80" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.youtube.com/watch?v=d-OHx4b2L80">YouTube</a>
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The proposed tax hike is still subject to review and approval by Italian lawmakers before implementation. Giulio Centemero, a member of Italy’s Chamber of Deputies, <a data-ct-non-breakable="null" href="https://x.com/GiulioCentemero/status/1846620141536399550" rel="noopener noreferrer nofollow" target="null" text="null" title="null">said</a> in an Oct. 16 X post that taxing cryptocurrencies would be “counterproductive,” calling for further discussion among lawmakers.&nbsp;&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mica-systemic-banking-risks-stablecoin-tether-ceo" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/news/mica-systemic-banking-risks-stablecoin-tether-ceo">EU MiCA rules pose ‘systemic’ banking risks for stablecoins — Tether CEO</a>
According to the proposed budget, the Italian government hopes to collect roughly $18 million yearly after raising the crypto tax rate. In 2023, lawmakers <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/italy-approves-26-capital-gains-tax-on-cryptocurrencies" rel="noopener noreferrer nofollow" target="null" text="null" title="null">increased the capital gains tax</a> on crypto trading for more than 2,000 euros to 26%, also as part of a budget plan.
<h2 id="mica-set-to-go-into-effect">MiCA set to go into effect</h2>
As a member of the European Union, Italy would still be subject to the Markets in Crypto-Assets (MiCA) framework passed by EU lawmakers and <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mica-systemic-banking-risks-stablecoin-tether-ceo" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://cointelegraph.com/news/mica-systemic-banking-risks-stablecoin-tether-ceo">set to go into effect</a> for crypto asset service providers in December. Though the regulatory framework will likely not affect a government’s ability to tax crypto, it aims to regulate stablecoin issuers, protect exchange users, and crack down on market manipulation.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ethsafari-brings-crypto-world-to-africa-and-africa-to-the-crypto-world/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">ETHSafari brings crypto world to Africa, and Africa to the crypto world</a>

Italy’s finance minister defends 42% crypto capital gains tax plan

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