The cryptocurrency world was shaken by Italy's surprise tax move. According to Deputy Minister of Economy Maurizio Leo, the tax rate applied to crypto gains over 2,000 euros will nearly double. This decision marks a radical change in Italy's regulatory approach to cryptocurrencies and resonates in global crypto markets. The Trend of Cryptocurrency Taxation is Increasing Across EuropeItaly's decision to raise taxes emerged as part of the country's budget plans for 2025. Deputy Minister of Economy Maurizio Leo presented the measures approved by the Cabinet on Tuesday evening. These measures aim to create resources to support families, youth, and businesses. The tax increase will significantly update the current regulations that have been in place since the 2023 tax year. Italian investors are currently taxed at a rate of 26% on crypto gains exceeding 2,000 euros. The new plan will raise this rate to 42%. This development reflects a trend of tightening cryptocurrency regulations across Europe. A similar tax increase is also planned in the United Kingdom. Reports indicate that British Chancellor of the Exchequer Rachel Reeves is considering raising capital gains taxes, including those on cryptocurrencies, from 20% to 39%. The Italian government plans to restrict cash usage in addition to the tax increase. This step is being implemented to combat tax evasion, but this approach could increase the use of cryptocurrencies.
|