The Italian government plans to increase the capital gains tax on cryptocurrencies from 26% to 28%, instead of the 42% initially planned.
The proposal, by Prime Minister Giorgia Meloni, has been defended by Economy and Finance Minister Giancarlo Giorgetti.
The decision to modify the proposed tax increase is unclear, but may be due to the recent rise in cryptocurrency prices following the US elections, in which several lawmakers who support digital asset policies won.
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Initially, the tax increase to 42% was expected to generate $18 million annually, but the revised plan may result in a lower amount.
The proposal is still pending review and approval by Italian lawmakers before it can be implemented.