Parliament members in the European country of Slovakia voted in approval of lowering crypto taxes, among additional measures affecting cryptocurrency holders.
On June 28 the Slovakian parliament voted to approve an amendment that will reduce personal income tax for profits gained from the sale of cryptocurrencies that have been held by the user for at least a year.
The taxes will be lowered to 7%, which is a significant decrease from the current taxation sliding scale of either 19% or 25%. Payments received in cryptocurrencies up to 2400 euros – roughly, $2,622.20 – will not be taxed.
In addition, the bill excludes income in the form of cryptocurrency from a health insurance contribution of 14%.
According to a report from a local Slovakian media outlet, the Ministry of Finance anticipates a financial impact from the amendment to be around 30 million euros per year.
This amendment comes a few weeks after parliament passed another amendment to the constitution, which codified the citizen’s right to use cash as a method of payment in light of talk around a digital euro.
Slovakia is one of the 27 member states of the European Union, which has been proactively monitoring developments in the crypto industry throughout the region.
Most recently, the EU signed its landmark Markets in Crypto-Assets (MiCA) regulations into law on May 31. The set of regulations was created with the aim of making Europe a hub for digital asset activity.
MiCA came on the table back in 2020 and has been praised by companies in the space for providing regulatory clarity.
This is opposed to the situation in other major markets, like the United States, which has yet to implement comprehensive guidelines for the industry. U.S. Republicans proposed a “Digital Asset Market Structure” bill, which is currently under review for its potential impact on the industry.
On June 29, the U.S. Securities and Exchange Commissioner, Hester Peirce, appeared remotely at Australian Blockchain Week and delivered a message reminding regulators that crypto laws shouldn’t assume “everything is a financial asset.”