Home News Ukrainian parliamentarian proposed to exempt cryptocurrency market participants from taxes

Ukrainian parliamentarian proposed to exempt cryptocurrency market participants from taxes

This week, Ukrainian parliament (Verkhovna Rada) will consider amending the country’s Tax Code, so that cryptocurrency market participants could be exempt from taxation till the end of 2029. The related draft law No 9083-1 was introduced by Yuri Derevyanko, who represents “Ruh novyh sil” (New Force Movement) and is an independent MP in the parliament, as reported by RBK Ukraine news agency.

Apart from tax holidays, the initiative comprises the definitions of such notions as “token”, “cryptocurrency”, “virtual asset issuer”, “mining”, “virtual currency transactions”, etc. The People’s Deputy also believes that this new mode of regulation would create conditions for rapid market growth and investment-friendly environment.

The draft law also proposes to impose a moratorium on taxing cryptocurrency mining equipment, including the exoneration from import duties and VAT-free domestic sales.

“The draft law exempts cryptocurrency market participants from taxes till December 31, 2029, and defines cryptocurrency as an intangible asset with the title to the units of value thereof recorded on the distributed ledger of transactions (blockchain),” – Derevyanko specified.

Cryptocurrency mining is defined as data processing activity intended to support the functioning of the distributed ledger of transactions (blockchain) with a goal of obtaining reward in the form of virtual assets.

“I believe that we should impose 10-year-long moratorium on taxing this sphere. We should streamline and legalize this huge segment, which will become a driving force of the new economy. These people represent the creative class which currently finds itself in a state of inner emigration. We have to provide for their development and get them out of this emigration,” – the parliamentarian added.

Last month, Verkhovna Rada proposed a draft law presupposing five percent taxation of all operations with crypto assets.