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?
It kinda makes sense and is good for the wider adoption of Bitcoin in the long term. It either needs to be treated as a commodity or a currency, either way it is going to attract some sort of taxation - especially as it seems to be used more and more for speculation purposes rather than a functional trading currency. It might be better to start at a lower rate though, more like 3% or something because I have a feeling that 10% is going to result in many people not reporting transactions or actively using methods that will be tougher for the government to track (like cashing out via gift cards). I wonder what sort of exchanges are going to cooperate with the government of Slovenia for this type of reporting and will they be banned if they do not comply.