Italy is set to scale back a planned tax hike on cryptocurrency capital gains, according to Reuters.

As is known, the Italian government announced in recent months that it will increase the tax on capital gains from cryptocurrencies such as Bitcoin (BTC) from 26% to 42%.

According to the news, Italian MP Giulio Centemero and Deputy Undersecretary of the Ministry of Finance Federico Freni said in a statement, “The tax increase will be significantly reduced during the parliamentary work.”

The MPs stated that such a step towards Bitcoin and cryptocurrencies carries the risk of reviving the shadow economy and said, “There is no longer any prejudice against cryptocurrencies.”

*This is not investment advice.