Italy has caused a bustle across the global crypto sector on Wednesday, raising tax orbiting virtual assets. In an unprecedented mover, President Georgia Meloni-headed country recently announced plans to increase capital gain tax on Bitcoin and cryptocurrencies to 42%. This significant hike, overflowing from an earlier tax rate of 26%, has tightened investors’ exposure to digital assets nationwide, raising market concerns.
Italy Announces Raising Capital Gain Tax To 42%
Recent reports convey that the government of Italy has decided to raise the capital gain tax on BTC and cryptocurrency from 26% to 42%. This decision follows the country’s recent stance on digital assets that mandated a 26% tax on cryptocurrency gains exceeding €2,000. The tax rate hikes could substantially curb investor participation in digital assets nationwide.
By imposing a higher tax on crypto gains, the nation aims to leverage cryptocurrency investment-based profits to bolster the economy. However, this rate hike could also fuel a negative impact on the market, curbing traders’ crypto participation in the EU region.
Simultaneously, it’s worth mentioning that the country’s inflation rate as of September was evaluated as 1.2%, comparatively lower than the rest of Europe. Nevertheless, the Italian government’s decision to increase the capital gain tax on Bitcoin and crypto has caused a frenzy among market participants nationwide.
How Is BTC Performing?
At press time, the BTC price gained nearly 3% intraday and is currently sitting at $67,546. The coin’s 24-hour low and high were recorded as $64,809.20 and $67,881.68, respectively. The coin rides a bullish wave today against the backdrop of the broader crypto market trend.
Simultaneously, the flagship crypto also leverages a substantial rise in institutional interest, mirroring bullishness. Notably, Bitcoin ETFs registered a whopping $371 million worth of inflows as of October 15, aligning with the coin’s pump above $67K. In the interim, Coinglass data indicated that BTC futures OI jumped nearly 3.5% to $39.14 billion today. Further, the derivatives volume rocketed nearly 61% to $106.47 billion. This data indicated that the coin remains bullish despite the recent capital gain tax hike by Italy. Crypto market enthusiasts continue to monitor the coins for further shifts amid key market events.
Coingape Staff
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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