Italy has announced plans to reduce its crypto tax rate, currently set at 42%. This decision comes as several nations reassess their approach to cryptocurrency amidst a historic market bull run. In the United States, major shifts in crypto regulation have occurred recently, with President-elect Donald Trump establishing the Department of Government Efficiency (DOGE) and appointing Elon Musk and Vivek Ramaswamy to key roles.
Meanwhile, Europe has seen its own positive developments. Italy’s government is reportedly considering a reduction in its crypto tax rate, with sources confirming that Prime Minister Giorgia Meloni has discussed cutting the rate, potentially lowering it to 28%. This marks a shift in Italy’s previously strict stance on cryptocurrencies, including a recent reaffirmation of the 42% tax rate by the country’s finance minister on October 31, citing the high risks associated with digital assets.
The shift in Italy’s position appears to have been driven by a proposal from the League, a coalition member of Meloni’s government, to amend and limit the tax increase. Additionally, another Italian political party has suggested removing the tax hike altogether and even proposed exemptions for certain profit margins.
Broader Shifts in Global Crypto Attitudes
Italy’s potential tax reduction aligns with broader global trends in cryptocurrency adoption. Over the past week, countries like Bhutan and El Salvador have expanded their Bitcoin reserves, and Tesla has also reached new milestones in its BTC holdings. These developments have prompted some traditionally anti-crypto nations to reconsider their skepticism toward digital assets.
Experts predict that more countries may soon begin accumulating Bitcoin reserves or storing capital in cryptocurrencies. Italy, which previously maintained a strict regulatory stance, has shown signs of softening. In July, the Bank of Italy introduced MiCA crypto regulations aimed at protecting investors, signaling an evolving approach to the sector.
