Home Editor's Pick Ukrainian Lawmakers Mull Two Crypto Tax Bills

Ukrainian Lawmakers Mull Two Crypto Tax Bills


Lawmakers in Ukraine are considering two legislative bills that will affect taxation of cryptocurrencies, local media reported Nov. 14.

The news outlet Interfax-Ukraine reported that the proposals have been submitted to the Supreme Council of Ukraine by both individual deputies and political parties, with one of the bills seeking to legalize cryptocurrencies and the other aiming to regulate taxation of profits from crypto transactions.

The purpose of the first draft law on crypto, seeing to legalize cryptocurrencies and token circulation, is the creation of a stable legal environment in Ukraine for crypto market participants, Interfax-Ukraine explains citing a parliamentarian’s Facebook post. The bill has been proposed by the Opposition Platform — For Life party, the article notes.

The second bill proposes the introduction of a 5 percent tax on legal entities’ and individuals’ profits from the sale of most crypto assets. The authors of the proposal, four lawmakers of the Servant of the People party, reportedly say that it is necessary “in order to create an optimal tax regime” and to prevent capital flight from Ukraine.

In October, the National Bank of Ukraine (NBU) has warned that cryptocurrencies can be used for money laundering and terrorism financing. The central bank advised Ukrainians to exercise caution around any activities related to cryptocurrencies.

In 2017, the NBU proposed introducing virtual asset regulation — that the government did not pass — declaring cryptocurrencies as property but not explicitly recognizing them as the legal tender.

In June, the Ukrainian government set plans to develop a use case for blockchain technology that would involve military records.

At the end of October, Ukraine’s international broadcaster UA: Pershyi reported that a local company began selling legal land plots for Bitcoin (BTC).

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