Lawmakers in Slovakia have voted in favor of an amendment that will reduce the taxation imposed on cryptocurrencies, which currently follows a sliding scale. The National Council of the Slovak Republic, the country’s parliament, has approved the amendment, along with additional measures that impact cryptocurrency holders.

On June 28, the National Council voted in favor of the amendment, which will lower the personal income tax on profits derived from the sale of cryptocurrencies held for at least one year. The tax rate will be reduced to 7%, a significant decrease compared to the current sliding scale of 19% or 25%. Additionally, payments received in cryptocurrencies up to 2,400 euros ($2,600) will not be subject to taxation.

Furthermore, the amendment excludes crypto income from the 14% health insurance contribution.

According to the Ministry of Finance, the amendment is expected to have an annual financial impact of approximately 30 million euros.

This amendment comes shortly after another constitutional amendment was passed by parliament, guaranteeing citizens the right to use cash as a payment method amidst discussions surrounding the digital euro.

Slovakia, as a member state of the European Union, has been actively monitoring developments in the cryptocurrency industry across the region. On May 31, the EU enacted the landmark Markets in Crypto-Assets (MiCA) regulations, aiming to establish Europe as a hub for digital asset activity. MiCA has been praised for providing regulatory clarity and has garnered positive feedback from companies in the space.

This stands in contrast to other major markets like the United States, where comprehensive industry guidelines are yet to be implemented. U.S. Republican lawmakers have proposed the Digital Asset Market Structure bill, which is currently being reviewed for its potential impact on the industry.

On June 29, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, participated remotely in Australian Blockchain Week and emphasized that crypto laws should not assume that “everything is a financial asset.”

Alice Trout