Italy is preparing to revise its proposed increase in the tax rate for crypto capital gains, as reported by Reuters on Tuesday.

Earlier, the government planned to raise the tax from 26% to 42% by the year's end.

The tax increase will be significantly reduced during the parliamentary work, lawmakers Giulio Centemero and Federico Freni stated.

The original plan for the tax hike was influenced by the growing interest in cryptocurrencies, particularly Bitcoin, which has seen its value rise above 100,000 USD recently. This increasing trend was noted by Deputy Finance Minister Maurizio Leo in October after announcing the tax increase.

CoinDesk has reached out for further comments from Centemero and Freni.