The National Council of the Slovak Republic, the country's parliament, has approved a measure to lower taxes on cryptocurrencies, among other changes affecting cryptocurrency holders. The amendment, passed on June 28. reduces personal income taxes on profits from the sale of cryptocurrencies held for at least one year. The tax rate will be lowered to 7%, a significant decrease compared to the current rates of 19% or 25%. Additionally, payments received in cryptocurrency up to €2.400 ($2.600) will be exempt from taxation.
Furthermore, the approved bill exempts cryptocurrency earnings from the 14% health insurance contribution. The Ministry of Finance in Slovakia anticipates that the amendment will have an annual financial impact of around 30 million euros. This development follows another constitutional amendment passed by the parliament, which established the right for citizens to use cash as a form of payment, aligning with discussions surrounding the digital euro. Slovakia, as an EU member state, has been actively monitoring cryptocurrency industry developments across the region.
In the European Union, the Market in Cryptoassets (MiCA) regulation was signed into law on May 31. marking a significant milestone. MiCA has received positive feedback from companies in the crypto space for providing regulatory clarity, distinguishing it from the situation in o the major markets like the United States. The US has yet to introduce comprehensive guidelines for the industry, although Republican lawmakers have introduced a bill on digital asset market structure and are currently assessing its potential impact.
SEC Commissioner Hester Peirce, speaking remotely at Australia Blockchain Week on June 29. emphasized the importance of not assuming that "everything is a financial asset" in cryptocurrency law. This serves as a reminder to regulators to consider the diverse nature of c cryptocurrencies and their potential uses beyond financial assets.
