Crypto Market News: Slovenia Eyes 25% Crypto Tax, Sparking Investor Backlash

Slovenia’s Finance Ministry has put forward a draft law to introduce a 25% tax on profits made from cryptocurrency transactions. The proposal, released on April 17, is now open for public feedback until May 5, 2025. If approved by lawmakers, the rule would come into force at the beginning of 2026.

As outlined by the Ministry, the tax would apply when cryptocurrency is exchanged for traditional currency or used to make purchases. Transactions between different cryptocurrencies and transfers between wallets owned by the same user would not be taxed under this proposal.

The Ministry noted that residents would be required to maintain a detailed record of their cryptocurrency transactions for inclusion in their annual tax filings. The taxable profit would be determined by deducting the initial purchase amount from the value received upon selling the digital asset.

Finance Minister Backs the Plan

Finance Minister Klemen Boštjančič defended the proposed changes, stating that crypto transactions should not remain untaxed. In a translated comment shared with local media, he said, 

“Right now, one of the most unpredictable financial tools goes untaxed, and that doesn’t make much sense. We’re not doing this for more revenue but for fairness in the system.”

He explained that the goal of the proposed tax is to bring cryptocurrency-related earnings in line with existing tax policies. Currently, Slovenia applies a 10% tax on crypto withdrawals and when digital assets are used for payments—a rule that came into effect in 2023. Casual crypto trading remains untaxed unless it is considered part of a business operation.

Personal trading, seen as a hobby, is usually not taxed. On the other hand, mining, staking, and similar business activities already fall under income tax rules.

Criticism from the Opposition

The proposal has drawn criticism from members of the opposition. Jernej Vrtovec, a member of Slovenia’s National Assembly and part of the New Slovenia party, shared his concerns in a statement on April 16.

Spet brez občutka! Slovenija ima priložnost postati kripto prijazna država, ampak z vladnimi predlogi bomo spet zamudili vlak.
S previsoko obdavčitvijo bomo spet gledali, kako mladi in kapital bežijo v tujino. Davki naj spodbujajo, ne dušijo! https://t.co/dN1fOEcSuU

— Jernej Vrtovec (@JernejVrtovec) April 17, 2025

He said, 

“With this kind of tax policy, we’re risking a loss of talent and investment. Young professionals and companies might start looking elsewhere.” 

Vrtovec also noted that Slovenia has the chance to be at the front of crypto development, but the proposed tax could push the industry away.

“Rather than setting up barriers, we should be creating room for innovation and growth,” he added. His comments suggest concerns about the long-term effects of strict tax measures on the local digital economy.

Crypto Use and Market Growth in Slovenia

Despite ongoing policy debates, Slovenia’s cryptocurrency market is showing gradual growth. According to figures from Statista, the number of people using crypto in the country could reach around 98,000 by 2025. That would make up nearly 4.6% of Slovenia’s population.

Slovenia’s cryptocurrency market is forecast to bring in approximately $2.8 million in revenue by 2025, according to the latest estimates. In mid-2023, the country became the first in the European Union to issue a sovereign bond using blockchain technology. The bond, valued at €30 million, carried a fixed annual rate of 3.65% and was structured to mature before the end of that year.

A previous attempt to tax crypto gains in 2022 aimed to introduce a 5% rate on profits above €10,000, but the bill did not pass. The current draft law marks a renewed effort by the government to bring digital assets under clear tax regulations.