Ukraine wants to regulate cryptocurrencies

The Ukrainian parliament is to analyze an alternative bill on cryptocurrencies. The proposed rules offer freezing tax collection on profits obtained by cryptocurrency investors by 2030.. 

MP Yuriy Derevyanko, a member of the anti-corruption Movement of New Forces founded in 2017 by former Georgian politician Mikheil Saakashvili, presented his version of the law.

“The bill provides for tax exemptions for all participants of the cryptocurrency market by December 31, 2029,” says Derevyanko. Then he explained the significance of such a decision for the Ukrainian economy:

“I believe that we must impose a moratorium on the taxation of the area [crypto] for the next 10 years, we must regulate and legalize this segment, which will become the driving force of the new economy.”

An alternative law, registered on September 27, offers slightly different definitions of cryptocurrencies, blockchains, miners and tokens. According to the document, tax exemptions will apply to all incomes from cryptocurrency transactions for both natural persons and entities.

In the counter

The document Derevyanko stands in the counter to the main project, which was presented at the beginning of September by several deputies of the party of President Petro Poroshenko. The main difference between these two acts lies in their approach to taxation. The first project offers a five-percent tax for individuals and legal entities operating using virtual currency assets, such as crypto-coins and tokens. From 1 January 2024, the tax on revenues from cryptu-crawal activities will increase to 18 percent. This, as the document states, may help Ukraine to obtain an additional 1.27 billion hryvnia (43 million USD) for the budget in 2019-2024.

Ukraine and crypto

Ukraine has repeatedly expressed its desire to create a national digital currency linked to the local currency (hryvnia).

The draft law on cryptocurrencies also contains provisions on the fight against money laundering, financing of terrorism and other criminal activities.

pic: pixabay

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