Italy plans to raise the BTCCapital Gains Tax to 42%, will the local market collapse?

Italian Minister of Economy and Finance defended the proposal to significantly increase the Cryptocurrency Capital Gains Tax from 26% to 42% in a public event on Thursday, stating that the digital assets carry a “very high risk.” The proposed tax increase still needs to be reviewed and approved by both houses of parliament before it can be formally legislated and implemented. It is estimated that the new tax proposal will bring in an additional net tax revenue of 17 million euros (580 million new Taiwan dollars) on the basis of the current 27 million euros (940 million new Taiwan dollars) and will not greatly benefit the country’s total budget of over 800 billion euros. On the other hand, as Italy announced the tax increase plan, the EU is preparing to fully implement the world’s first trap encryption market regulation MiCA at the end of this year.