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?
I think this is too much because surely they'll also charge income taxes, right? Or is it going to be the only tax for cryptos, and it will have a fixed rate of 10%? In that case, it's not a bad tax rate. But the problem is that this encourages to sell for fiat on very rare occasions and in big batches because otherwise it'll be hard to pay taxes all the time. Also, it effectively makes crypto to fiat trading impossible, but perhaps it's not a big deal because one can simply use stablecoins for trading.
Some countries already regulate cryptos and imposed taxes on them. As for mine, cryptos aren't fully regulated yet, and while some people pay property taxes on them, that's not really necessary because they haven't been classified for tax purposes yet.