Proposing a new 25% tax on cryptocurrency trade profits, Slovenia is stepping up its efforts to regulate the crypto sector. This has caused both support and criticism. With more people using cryptocurrencies, the draft law aims to make taxes more like those on other types of money. But people who are against the move say it could hurt growth and make investors leave the country.
What the New Crypto Tax Proposal Includes
A statement from the Finance Ministry on April 17 said that the planned law would put a 25% tax on profits made from trading cryptocurrency for cash or using it to buy things. It’s important to note that this wouldn’t apply to crypto-to-crypto trades or transfers within your wallet.
Taking the difference between the buying and sale prices would give you the tax base. To file their annual tax returns, taxpayers are required by this rule to keep detailed records of all their transactions. Legislation would become law on January 1, 2026, if it passes.
Minister Justifies Tax
Klemen Boštjančič, the finance minister, supported the tax by saying that it’s not fair that one of the riskiest types of assets shouldn’t be taxed. According to the Slovenia Times, he said, “The goal of taxing crypto assets is not to bring in tax revenue. However, we find it illogical and unreasonable that one of the riskiest financial instruments is not taxed at all.”
Opposition Worries Taxes Will Stifle Growth
Jernej Vrtovec, from the opposition group New Slovenia, spoke out strongly against the bill, saying that too many taxes would hurt new ideas. On April 16, X said, “Slovenia has the chance to become a crypto-friendly country, but with the government’s plans, we will miss the train again.”
Crypto Market Future Uncertainty
Slovenia has been a leader in the use of digital money. In July 2023, they even issued the first digital national bond in the EU. With an expected 98,000 users by 2025 and a market worth $2.8 million, crypto is taking off in the country.
Conclusion
Slovenia is at a crossroads because the public consultation process is still ongoing. Tongoingsted 25% crypto tax might align with global regulatory trends but could turn off investors and innovators.
