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Ukranian proposed Bill Taxes 5% from Every Cryptocurrency Gains

A new bill in Ukraine proposes 5% tax on every cryptocurrency income gains from of both businesses and individual.

The proposed bill if implemented into a law will see any profits gained from cryptos being cut by 5% in government taxes. Adding the mandatory military charge of 1.5%, Ukrainian cryptocurrency enthusiast will now be subjected to about 6.5% in income tax.

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An additional 5% to be levied on Ukrainians Crypto Users

The Ukrainian government has not yet declared the official legal status of cryptocurrency despite its popularity in the country. The country with a rapidly growing cryptocurrency sector demanding an immediate regulatory action from the government. This, however, is yet to see light as the government is yet to come out with a regulatory measure on cryptocurrencies in the country.

On top of it, already filed three bills regarding cryptocurrency regulation in Ukraine, a new bill concerning cryptocurrency taxation has been brought on board. This bill came shortly after the approval of a regulatory concept later last month. Already some dozens of Ukrainian administrators headed by lawmaker Oleksiy Mushak are working on the new bill. The short-term goal of the bill would be to impose a temporary tax regime in the crypto sector. The temporary bill would if approved start working in 2019 and extend up to 2025.

According to the draft bill, a proposed 5% tax is to be introduced on every profit from cryptocurrency trading and mining. The tax will be calculated from the difference between buying and the selling price of cryptocurrency. For crypto miners, the tax will be calculated from the difference between mining rewards and expenses. However, this tax will only be imposed on cryptocurrencies exchanged with fiat or when buying goods or services. Crypto-to-crypto transactions will not be affected by this tax.

Getting a Hold of Cryptocurrencies

The cryptocurrency industry is among the hardest to regulate the financial sector, given the amount of anonymity it encompasses. However, the sprouting physical crypto related businesses are attracting regulators. In this regard, the industry is working together with regulators to ensure coexistence with the traditional financial sector.

“The state shouldn’t touch the exchange between cryptos but the exit to fiat, the real sector, and the purchases of goods. 5% sounds optimal. In fact – this is the price to pay for the legalization of income from dealings in crypto,” says Artiom Afyan, managing partner at Juscutum law firm.

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Jacob Okonya

Jacob has been engaged in blockchain technologies, Bitcoin, and fintech. He worked mostly as a blockchain market researcher, fintech journalist, and online forum moderator. Jacob is involved in creating articles and educational content for different project components, explaining how users can utilize the various resources.

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