Italy is set to trim its planned tax increase on crypto capital gains, Reuters reported on Tuesday .
Two months ago, the government was intent on raising the tax to 42% from 26% by the end of December.
"The tax increase will be significantly reduced during the parliamentary work," lawmakers Giulio Centemero and Federico Freni, a junior minister at the Treasury, said in a statement according to Reuters.
The decision to increase the capital gains tax was inspired by the rising popularity of investments in crypto, especially bitcoin, which climbed above $100,000 last week . The “phenomenon is spreading," Deputy Finance Minister Maurizio Leo told Bloomberg in October after announcing the news.
CoinDesk reached out to Centemero and Freni for a comment.