According to a report by Reuters, Italy is poised to scale back its intended tax increase on capital gains from cryptocurrency. Previously, the government had aimed to raise the tax rate from 26% to 42% by the end of December. However, lawmakers Giulio Centemero and Federico Freni, the junior minister at the Treasury, have stated that the tax increase will undergo a significant reduction as the legislation progresses.
The initial decision to increase the capital gains tax was driven by the growing popularity of cryptocurrency investments, particularly in bitcoin, which briefly surpassed $100,000. This trend has been described as a spreading phenomenon by Deputy Finance Minister Maurizio Leo.
Centemero and Freni were approached for further comment.