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Cryptocurrencies in Ukraine will be legalized with a 19.5% income tax
Ukraine may legalize cryptocurrencies as early as September by introducing an 18% tax on investment income and a 1.5% military tax. This was reported by Forbes with reference to a draft law prepared by the National Securities and Stock Market Commission (NSSMC) of Ukraine.
The tax rate will be applied to the difference: if an investor has invested â‚´10,000 and the amount has increased to â‚´11,000, the tax will be applied to â‚´1,000.
According to Yuriy Boyko, a member of the NSSMC, the draft law could come into force as early as 2024 if the Verkhovna Rada passes it in September this year. The draft law stipulates that the National Bank of Ukraine (NBU) and the NSSMC will regulate the cryptocurrency market in Ukraine.
Virtual assets will be divided into three types: electronic money, asset-linked tokens, and other cryptocurrencies. To issue tokens, a legal entity will need approval from the NSSMC as a legal entity. For authorization, a legal entity must issue a white paper.
Regarding the regulation of cryptocurrencies in Ukraine, the ideal formula consists of a balance of the interests of society and the state. According to the NSSMC experts, excessively strict «rules of the game» may negatively affect the development of the virtual asset market and blockchain technologies. On the other hand, broad «self-regulation» of the market can cause significant damage to investors whose assets must be protected.
«Our goal is to establish rules that would protect investors and make the work of the virtual asset market transparent,» said Commission member Yuriy Boyko.
Interestingly, in March, representatives of the National Bank of Ukraine (NBU) expressed an ambiguous position on cryptocurrencies. According to experts, after a year of war, both positive and negative aspects of digital assets can be identified. However, the NBU’s attitude toward cryptocurrencies remains skeptical, due to the financial and economic problems caused by Russia’s invasion, the NBU press service said.