Odaily News Italian Prime Minister Giorgia Meloni’s government is likely to approve a proposal by coalition partners to reduce a tax increase on cryptocurrency transactions, according to a source familiar with the matter. The League, a junior partner in Meloni’s governing coalition, has proposed an amendment to cap the tax rate on crypto transactions at 28%, compared with an initial increase to 42% proposed in last month’s budget, according to a copy of the proposal. The current tax rate is 26%. Cryptocurrency executives have said the proposed tax rate is too high and will make the local industry less competitive than other EU countries. The EU is preparing to fully adopt its first EU-wide cryptocurrency regulation, known as “MiCA,” by the end of this year. In addition, Forza Italia, another ruling coalition party founded by the late Silvio Berlusconi, has proposed another amendment that seeks to completely cancel the tax increase and eliminate tax exemptions for gains of 2,000 euros ($2,120) or less. As part of the amendment proposed by the League, Italy will establish a permanent working group consisting of digital asset companies and consumer associations to educate investors about cryptocurrencies. Two people familiar with the matter said the government is likely to approve the Coalition's proposal, although no final decision has been made and it could be amended. (Bloomberg)