7 September 2021

News agencies in the Republic of Slovenia report that the government has proposed a simplification of tax law regarding cryptocurrencies.

Under current regulations, government authorities calculate crypto-related taxes on a complicated case-by-case basis. Under the proposed change, crypto-related income would be subject to a simple 10% tax.

Government authorities say citizens will not immediately pay taxes on portfolio growth. ““We would like to emphasize that it is not profit which would be taxed,” a government spokesman said, “but rather the amount a Slovenian tax resident receives in their bank account on turning the virtual currency into cash or when buying a thing.”

Around the world, governments are debating whether and how to tax cryptocurrency investments. It is a tricky question, because treating the results of crypto investing as income can be seen as a step toward recognizing the digital assets as currency.

A 12-country Redfield & Wilton Strategies survey of more than 31,000 EU residents shows that most Europeans prefer that cryptocurrencies be regulated and taxed by individual countries rather than the EU.

The survey also reveals a nationalist streak when it comes to official digital currencies. Most Europeans say they would prefer local cryptocurrencies over the proposed digital euro. 

Asked why they don’t yet own cryptocurrencies, most Europeans cited a lack of knowledge and understanding of crypto technology and investing.