Slovenia is one of the Cryptocurrency Tigers around Europe.
Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.
Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?
Crypto to fiat conversions are pretty easier to be taxed, all you have to do is make KYC mandatory to your local exchanges and most of the money would be under your radar, the most difficult part is to tax crypto for crypto or crypto for service transactions where a person makes payment for a service directly in crypto, the transaction is almost impossible to trace unless traced on standalone basis which will be quite expensive and time consuming, therefore this would be more like a Challenge for Slovenia to implement this, even direct taxes on crypto earnings would be based on good faith from citizens.