Slovakian Parliament Passes Bill to Reduce Crypto Taxation

Slovak Republic Passes Tax Legislation for Cryptocurrency Holders

Members of the Slovak Republic’s National Council, the nation’s legislative body, have voted to pass legislation lowering taxes on cryptocurrencies, as well as other measures that impact cryptocurrency holders.

On June 28th, the National Council gave their approval to a modification which will lower personal income tax on the profits acquired from the sale of cryptocurrencies, provided they have been held by the user for a minimum of one year.

Taxes will be reduced to 7%, a substantial decrease from the present taxation sliding scale of 19% or 25%. Payments of up to 2,400 euros ($2,600) made in cryptocurrencies will not be subject to taxation.

Furthermore, crypto income is exempt from the 14% health insurance contribution.

The Ministry of Finance in Slovakia is expecting a yearly financial impact of approximately 30 million euros resulting from the amendment, as reported by a local media source.

This amendment follows shortly after parliament passed another amendment to the constitution, which established the citizen’s right to use cash as a payment method in response to discussions about a digital euro.

EU and US Regulatory Clarity for Crypto Industry

Binance has reversed its choice to remove privacy coins from its platform in Europe.

Slovakia is one of the 27 nations that make up the European Union, and the EU has been keeping a close eye on the crypto industry’s progress in the area.

On May 31, the European Union formalized its Markets in Crypto-Assets (MiCA) regulations. This set of regulations was designed to make Europe a center for digital asset activity.

MiCA, which debuted in 2020, has been lauded by firms in the industry for offering regulatory clarity.

In comparison to other major markets, such as the United States, which has not yet implemented comprehensive regulations for the industry, this is not the case. A Digital Asset Market Structure bill, which is being assessed for its potential effect on the sector, has been put forward by U.S. Republican legislators.

At the U.S. Securities and Exchange Commission, Commissioner Hester Peirce virtually attended Australian Blockchain Week on June 29 and cautioned regulators that not all crypto should be considered a financial asset.

Do the potential rewards of using cryptocurrency as collateral for home loans outweigh the associated risks?