Italy’s government made a bold move to tighten the screws on cryptocurrency profits, unveiling plans to increase capital gains taxes on Bitcoin and other cryptocurrencies from the current 26% to a staggering 42%.

This unprecedented hike, announced by Deputy Minister of Economy and Finance Maurizio Leo during the unveiling of the 2025 Budget Law on Wednesday, is already sending shockwaves through the crypto community.

The tax increase is being positioned as a necessary measure to address budget shortfalls stemming from years of lenient fiscal policies. Leo explained the government is taking action as “this phenomenon is broadening out” — referring to the rapid growth of cryptocurrency trading and the resulting gains.

Tax Disparities Spark Debate

Currently, the tax rate on crypto …

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