Italy: the law introduces the increase of crypto capital gains

From 2025 in Italy, with the new law, a significant increase in the tax rate on crypto capital gains will come into effect, bringing it to 42%. The government aims to regulate a growing sector, involving millions of Italian investors and attracting criticism from many.

Let’s see all the details below.

Summary

• Increase in taxation on crypto capital gains: what the 2025 maneuver of the law in Italy provides
• An exponential growth in the crypto market
• Who will be affected by the new tax regime?

Increase in taxation on crypto capital gains: what the 2025 maneuver of the law in Italy provides

As anticipated, the recent economic maneuver 2025, presented by the Italian government, introduces a significant change in the taxation of capital gains from cryptocurrencies.

Starting from January 1, 2025, the tax rate on these incomes will be raised to 42%, a measure that represents a substantial increase compared to the current taxation of 26%.

The announcement was made by the Deputy Minister of Economy, Maurizio Leo, during a press conference in which the main measures of the maneuver approved on October 15 by the Council of Ministers were presented.

The objective of the new fiscal policy is to regulate the rapidly growing crypto sector, which in recent years has seen a growing number of Italians engage in bull and bear trading operations.

However, for many, the measure is seen as an obstacle to digital innovation and more generally to the blockchain sector. Not surprisingly, the platform Young Platform is among the first to rebel against this steep increase.

An exponential growth in the crypto market

According to data from the Blockchain and Web 3 Observatory of the School of Management of the Politecnico di Milano, in Italy there are over 3.6 million people involved in the cryptocurrency market.

Of these, about 32% have made investments through exchange platforms, 17% have purchased directly using wallet services.

Again, 38% opted for more traditional methods, such as trading through banking applications or financial brokerage platforms.

The exponential growth of the market has prompted the government to intervene with a more stringent taxation system.

Until today, the capital gains from cryptocurrencies were taxed at 26%, aligning with traditional financial returns. However, with the entry into force of the new 42% rate, Italy positions itself among the countries with one of the most severe tax regimes for the crypto sector.

The increase of the rate to 42% represents a decisive step and reflects the government’s intention to ensure that the growing cryptocurrency market contributes more significantly to the State’s coffers.

According to Deputy Minister Leo, this intervention is made necessary by the expansion of the phenomenon, with more and more citizens investing in cryptocurrencies, often without adequate regulation.

Cryptocurrencies, in fact, have so far been seen as a gray area in many international fiscal contexts, and the Italian government, with this maneuver, intends to address any legislative gaps.

In particular, the 42% levy will apply only to capital gains realized starting from 2025, thus excluding any potential gains prior to this date.

Who will be affected by the new tax regime?

The new regulation will have adirect impacton millions of Italians who operate in the cryptocurrency market. Anyone operating in the market, in fact, regardless of the chosen investment method, will be subject to the new tax rate.

This change could affect the behavior of investors, especially those who were attracted by the low taxation compared to other countries.

However, some experts believe that the sector will continue to grow, although the increase in taxation may make gains less attractive for retail investors.

Even the exchange platforms and wallet service providers will have to adapt to the new tax framework, implementing solutions to ensure their clients’ compliance with the new regulations.

In other words, the introduction of this higher rate on cryptocurrencies reflects a cambiamento di paradigma in the government’s perception regarding crypto-assets.

What was once seen as a niche sector now represents a significant part of the digital economy and the personal finances of Italians.

The challenge for the government will be to ensure that this new taxation does not completely discourage investors, but at the same time manages to adequately integrate the cryptocurrency market into the Italian tax system.

If well managed, this transition could lead to greater stability and regulation, also fostering a safer environment for investors, according to some.

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