cryptojournalist
Italy’s finance minister, Giancarlo Giorgetti, has sparked debate by defending the government’s plan to slap a whopping 42% capital gains tax on cryptocurrencies like Bitcoin. Speaking at a World Savings Day event on October 31, Giorgetti emphasized that digital assets pose a “very high level of risk,” justifying the need for additional taxes.
The proposed tax hike has been met with skepticism, particularly from lawmakers like Giulio Centemero, who argue that taxing cryptocurrencies would be “counterproductive” and require further discussion. Currently, Italy taxes crypto gains above €2,000 at 26%, but the new rate would replace this existing tax, aiming to collect approximately $18 million annually.
Giorgetti’s stance on cryptocurrencies reflects growing concerns about their volatility and potential risks. However, critics worry that such a steep tax hike could stifle innovation and drive investors away. As the Italian government pushes forward with its budget bill, lawmakers will need to carefully weigh the benefits and drawbacks of this proposal.
It’s worth noting that Italy, as an EU member, will soon be subject to the Markets in Crypto-Assets (MiCA) framework, set to take effect in December 2024. This regulatory framework aims to regulate stablecoin issuers, protect exchange users, and prevent market manipulation. While MiCA won’t directly impact taxation, it will undoubtedly shape the broader crypto landscape in Europe.
As the debate unfolds, one thing is clear: Italy’s proposed tax hike has significant implications for the crypto community. Whether this move will ultimately safeguard investors or hinder growth remains to be seen.
