Several Decisions on Cryptocurrency by Eastern Europe
Eastern European nations have been following closely regulatory developments in the West to better understand where the wind is blowing before addressing the challenges presented by cryptocurrencies. This strategy has proved fruitless, however, as developed western countries, and international organizations, have not been able to come up with a unified approach towards regulating the crypto space. The weightlessness goes on.
Russia Postpones Crypto Regulation: The adoption of the legislation meant to regulate the crypto industry in Russia has been delayed, despite President Putin’s July deadline for the legal framework. In the past weeks, Russian outlets have quoted officials expressing concerns that the draft laws introduced in the State Duma in March won’t be approved during the spring session. The three bills adopted on first reading in May were expected to pass a second vote before the parliament’s summer break.
Bulgaria’s Financial Regulator to Monitor the Crypto Sector: Bulgaria, one of those EU member-states that await a pan-European decision on cryptocurrencies, has not made any significant progress towards regulating the crypto space if we don’t count a clarification notice on crypto taxation issued by the National Revenue Service some time ago. However, the recent activity in Brussels, including the adoption of the 5th Anti-Money Laundering Directive which entered into force last week, has provided enough stimulus for authorities in Sofia to do something.
Crypto Tax Break Introduced in Poland: Poland, which is also wondering what to do with cryptocurrencies, decided in May to temporarily freeze its plans to tax all crypto transactions. Earlier this year, the Polish Ministry of Finance announced it would impose the “Civil Law Transactions Tax” (PCC) on all purchases and sales of cryptocurrency in the country. This meant that the crypto holdings of a Polish trader could potentially melt down to zero because of the 1% tax levied at each transaction, regardless of its profitability. Regulators decided to abandon the idea until they figure out how to comprehensively regulate the sector.
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