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Monday, October 18, 2021

Slovenia Govt put 10% tax on Cryptocurrencies while Digital Yen Test by Chinese Bank

Slovenian authorities are considering introducing a 10% tax that would be applied to earnings from financial transactions that involve Bitcoin (BTC), Ethereum (ETH) and other digital assets.

In accordance with the local legislation in force, financial regulators can now investigate, if they deem it necessary, any transaction carried out by an individual and which involves cryptocurrencies. The standard could serve as a basis for subsequently creating a body supposed to monitor crypto transactions carried out by citizens.

The initiative would cover all transactions involving digital assets and involving the purchase or sale by citizens of goods and / or services, as well as the exchange of cryptocurrencies for a fiat currency. The authorities ensure that the amount of tax would not exceed 10% of earnings.

The dedicated site Investing.com specifies that the Financial Administration of the Republic of Slovenia (FURS) gave details on this subject during an interview for one of the regional media, stressing in particular that “it is not the income to be taxed but the amount that a Slovenian tax resident receives in his bank account by exchanging his cryptocurrencies for cash and by purchasing goods and / or services ”.

In recent years, Slovenia has shown itself to be in favor of the implementation on European territory of digital assets and blockchain in general. The crypto index launched by financial research firm CryptoHead ranks it seventh among the listed countries based on their ability to fully realize the potential of crypto assets. The index tracks several elements including Google searches, access to crypto distributors, and applicable legislation.

The digital Yuan: test of Chinese banks

Chinese state-owned banks, Bank of Communications and China Construction Bank, will verify the possibility of using the digital Yuan for the acquisition of financial products in collaboration with asset managers and insurers.

If successful, the e-CNY will receive additional use cases. It is remarkable that initially the project was aimed at facilitating retail payments.

China Construction Bank partners are the Shanghai Tiantian Fund Distribution platform owned by financial services provider East Money, as well as e-commerce giant JD.com. The Bank of Communications did not disclose such information.

At the time of writing, China Construction Bank has processed 28.5 million transactions worth 18.9 billion yuan (about $ 2.9 billion) using the digital Yuan. The credit agency opened 7.23 million digital wallets for retail customers and 1.19 million – for businesses.

The Bank of Communications carried out 6.3 million transactions using the digital Yuan for an amount of 2.5 billion (approximately 387 million dollars).

Previously, China used the Digital Yuan to pay for the cost of delivering goods on futures contracts.

Recall that the “People’s Daily” newspaper announced the plans of the Chinese government to create an international clearing and settlement network for mobile payments using the digital Yuan.

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