Italy to raise taxes on cryptocurrency in a record-breaking move
Italy to raise taxes on cryptocurrency in a record-breaking move
Italy is set to introduce sweeping changes to its tax policies on cryptocurrency, significantly increasing the levy on capital gains from digital assets.
This move, part of broader fiscal reforms aimed at boosting government revenue, will see the tax rate on cryptocurrency profits rise from 26% to a staggering 42%—marking a bold shift in the country’s approach to regulating the fast-evolving digital asset market. This was stated by Deputy Economy Minister Maurizio Leo during a press conference on the 2025 budget, Il Sole reported.
The new tax plan is aligned with Italy's efforts to close budget gaps and increase revenue, as the government also targets major corporations in sectors like banking and energy. Italy’s Ministry of Finance estimates that the adjustments could generate up to €4 billion in additional revenue. The cryptocurrency tax reform is just one component of a broader package aimed at stabilizing the country’s public finances amid economic uncertainty and inflation pressures.
The revised tax structure will apply to capital gains from cryptocurrency investments above a minimum threshold, targeting both retail investors and larger holders of digital assets. This move positions Italy among a growing number of European countries tightening cryptocurrency regulations, as governments increasingly seek to capture untapped revenue streams from the digital economy
All capital gains in excess of €2,000 were previously taxed at 26%, but now the tax rate rises to 42%.
Industry analysts note that the increased tax burden could deter investment in cryptocurrencies and potentially push Italian investors to seek offshore alternatives. However, government officials argue that the new policy is essential for ensuring fair taxation in an industry that has grown rapidly in recent years but has largely escaped traditional tax oversight.
The broader implications of this policy shift could reverberate across Europe, especially as the European Union looks to standardize cryptocurrency regulations through initiatives like the Markets in Crypto-Assets (MiCA) framework. Investors and market participants will be closely watching how Italy enforces these measures, as well as whether other EU countries will follow suit with similar taxation reforms.
As Italy pursues fiscal tightening, the government’s ability to balance public revenue generation with maintaining market competitiveness remains uncertain. With the January 2025 deadline for full implementation looming, stakeholders across the cryptocurrency ecosystem are bracing for a new era of increased regulatory scrutiny and higher tax obligations.
These developments underscore the growing global trend toward stricter oversight of the digital asset industry, with Italy setting a notable precedent for how governments may seek to regulate—and tax—cryptocurrencies moving forward.
See also: Crypto exchange OKX announced a large-scale token delisting
