As published on: blockzeit.com, Monday 19 June, 2023.
With legislative permission, Ukraine proposes collecting an 18% tax on crypto profits in 2024. Learn more about the new tax plan.
Authorities in Ukraine have indicated they will implement a tax of 18% on cryptocurrency gains if it is passed by the legislature later this year. The crypto business needs proper taxation and regulation, and this action will help with both.
The regulatory commission is pushing for more authority for itself and the central bank to better monitor and regulate the cryptocurrency sector and the taxation structure. To this end, the proposed law requires all cryptocurrency exchanges and brokerages in Ukraine to get business licenses from the regulatory body.
Ukraine has been working hard to bring its cryptocurrency laws to EU norms. To demonstrate its dedication to aligning standards with worldwide best practices, the country plans to enact laws similar to the European Union’s Markets in Crypto-Assets (MiCA) legislation. In this regard, spokesman Oleksandr Boyko stressed the significance of complying with EU standards, saying that exchanges and crypto traders must do so to function in the market.
The cryptocurrency community in Ukraine had mixed reactions to the government’s announcement that it would begin taxing cryptocurrency gains at 18%. The brains behind the Kuna cryptocurrency exchange, Mykhailo Chobanyan, has warned against making quick decisions and instead urged a careful examination of the motivations, methods, and timelines for any proposed regulations.
According to cited legal experts, the offered tax rate can discourage investors and cause a mass exodus of consumers and crypto firms from Ukraine. Amid this discussion, the central bank stressed the significance of laws that balance consumer protection and financial stability, considering the unique features of Ukraine’s legal and economic system.
Kyiv has also promised to take preventative actions against instances of crypto-powered corruption. This complex answer illustrates the many factors to be considered in Ukraine’s planned crypto tax policy.
It is clear that Ukraine is committed to bringing the cryptocurrency sector under regulatory control, as seen by the intention to begin collecting an 18% tax on crypto revenues starting in 2024.
This proposed tax aims to provide a secure and well-regulated environment for cryptocurrency trading while also matching Ukraine’s practices with international norms. This goal will be accomplished in conjunction with improved regulatory measures. As the landscape of cryptocurrencies continues to shift, Ukraine is working to find a middle ground to foster innovation while still protecting its citizens’ economic and consumer rights.