Slovakian parliament approves lower crypto taxes.

Members of the National Council of the Slovak Republic, the country’s parliament, have voted to approve lower taxes on cryptocurrencies, as well as additional measures that will affect cryptocurrency holders.

On June 28, the National Council voted in favor of an amendment that will reduce the personal income tax on profits made from the sale of cryptocurrencies held by the user for at least one year.

The taxes will be lowered to 7%, which is a significant decrease from the current sliding scale of taxation, which is either 19% or 25%. Payments received in cryptocurrencies up to 2,400 euros ($2,600) will not be subject to tax.

In addition, the amendment exempts crypto income from a health insurance contribution of 14%.

According to a report from a local Slovakian media outlet, the Ministry of Finance estimates that the amendment will have a financial impact of around 30 million euros per year.

This amendment comes a few weeks after the parliament passed another amendment to the constitution, which established the citizen’s right to use cash as a payment method in response to discussions about a digital euro.

Related: Binance reverses decision to delist privacy coins in Europe

Slovakia is one of the 27 member states of the European Union, which has been actively monitoring developments in the cryptocurrency industry across the region.

On May 31, the EU enacted its landmark Markets in Crypto-Assets (MiCA) regulations. These regulations were created to position Europe as a center for digital asset activity.

MiCA was first introduced in 2020 and has been praised by companies in the industry for providing regulatory clarity.

This is in contrast to the situation in other major markets, such as the United States, which has yet to implement comprehensive guidelines for the industry. 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, appeared remotely at Australian Blockchain Week and reminded regulators that crypto laws should not assume that “everything is a financial asset.”

Magazine: Home loans using crypto as collateral: Do the risks outweigh the reward?

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