On October 1st, the Romanian President, Nicușor Dan, announced his support for raising taxes on crypto gains.
His announcement comes as Uptober kicked off, sending Bitcoin above $117,000.
Romanian President’s Explanations
In his message, Nicușor Dan stated that he had sent back to Parliament a law that would have annulled a fiscal measure that had been recently adopted by the Romanian Government to “reduce the budget deficit.”
He said that in recent months, Romania has been making great efforts to balance the budget, and one of these measures is to increase the tax on crypto transaction income from 10% to 16%.
He mentioned that the law, which has recently been promulgated by the Parliament via an amendment in the decision-making Chamber, included a temporary exemption for this type of income, at a time when the country is “striving to make the tax system fairer and more sustainable.”
The President requested the re-examination of the law because it’s not fair that while most citizens pay taxes, certain gains are treated preferentially, without a clear analysis of the budgetary impact and a coherent vision of fiscal policy.
Previously, after passing the Senate in Romania, the Parliament adopted a last-minute amendment to the Fiscal Code that exempted crypto gains in the country from the 10% income tax until July 31.
It remains to be seen what the Romanian Parliament will decide regarding crypto taxes in Romania.
It’s worth noting that with this message, the President doesn’t show too much support for the innovative industry, risking sending potential investors away. His message was strongly criticized by members of the crypto industry on X.
If the country were to allow a friendlier fiscal policy towards crypto, this could attract more capital inflows.
The President’s announcement comes at the beginning of Uptober, a bullish month for the crypto industry.
Bitcoin Trades Above $117,000 on October 1st
At the moment of writing this article, BTC is trading above $117,000, up by almost 4% in the past 24 hours.
Bitcoin’s price is supported by continued global adoption, institutional interest, and accumulation. Europe is also embracing Bitcoin and crypto, and adoption in Romania has been intensifying in the past few years.
Despite the President’s support of raising taxes, the crypto industry in the country and beyond continues to thrive, celebrating the debut of Uptober and remaining optimistic for the future.
