Italy plans to raise the capital gains tax on Bitcoin from
26% to 42%. This decision is part of the government’s efforts to finance costly
election promises while reducing the fiscal deficit.
Deputy Finance Minister Maurizio Leo announced the change
during a conference call today (Wednesday). He indicated that the move is in
response to the increasing popularity of Bitcoin, referring to it as a
“spreading phenomenon.” This statement was reported by Bloomberg.
Regulatory Changes Affect Bitcoin
Other countries have previously attempted to tax
cryptocurrency trading, but these efforts have often failed to significantly
boost government revenues. For example, India introduced stringent digital
asset taxes two years ago. This led to a decline in trading volumes, as many
local investors shifted to offshore platforms to avoid the taxes.
Italy’s announcement comes at a time when the European Union
is preparing to implement new regulations for cryptocurrencies. Known as MiCA,
this regulatory framework is expected to be fully in effect by the end of this
year.
⚡️JUST IN: 🇮🇹 Italy is reportedly considering raising its capital gains tax on #Bitcoin and other cryptos from the current 26% to as high as 42%.@paoloardoino, any chance you can stop this? 🤨 pic.twitter.com/v7cvpWiDyY
— Satoshi Club (@esatoshiclub) October 16, 2024
Despite the tax increase, Bitcoin’s value has risen. As of
12 pm in London on Wednesday, Bitcoin was trading 1.8% higher. The
cryptocurrency has experienced a 17% increase in value over the past month.
Concerns Over Global Crypto Structures
The European Securities and Markets Authority (ESMA) has
issued an Opinion regarding the authorization of global crypto firms under
the MiCA Regulation. The Opinion addresses risks associated with these firms
seeking EU authorization while maintaining significant operations outside the
EU’s regulatory scope, as reported by Finance
Magnates.
ESMA expresses concerns about complex structures, such as
EU-authorized brokers routing orders to non-EU venues, which may impact
consumer protection. It advises National Competent Authorities to
evaluate these structures carefully and emphasizes a case-by-case assessment of
execution, conflicts of interest, and custody obligations.
This article was written by Tareq Sikder at www.financemagnates.com.
