Development of cryptocurrency taxation law in Ukraine

25.06.2024

The National Commission on Securities and Stock Market of Ukraine (NSSMC) is actively working on developing a cryptocurrency taxation law. This law is an adaptation of the European MiCA (Markets in Crypto-assets) regulation to Ukrainian legislation, which will promote the legalization of cryptocurrencies and their integration into the country's financial systеm. Key aspects of the law:

Adapting European standards:

The law includes the adaptation of MiCA standards approved by the European uniоn for regulating the crypto-assets market. This will allow Ukraine to integrate into the European financial systеm and ensure compliance with international standards.

Cryptocurrency taxation:

The main goal of the law is to establish clear rules for taxing cryptocurrency transactions. It is proposed that the tax burden will depend on the duration of asset holding. A zero tax is proposed for investors who hold cryptocurrency for more than a year, similar to the German taxation model.

Private property rights:

The law guarantees private property rights for virtual assets, allowing the use of cryptocurrency as collateral for loans and holding it in commercial bank deposits. This will promote the development of financial services and increase trust in cryptocurrencies.

Consultations with crypto exchanges:

For the development of the law, NSSMC collaborated with leading crypto exchanges such as Kuna, WhiteBIT, and Binance. This ensures that market needs are taken into account and contributes to creating an effective regulatory environment.

Amendments:

After the publication of the law, any stakeholders, including the crypto market, National Police, Economic Security Bureau, National Bank, Ministry of Digital Transformation, financial monitoring, and Ministry of Finance, can submit their amendments and proposals. This will help consider all possible aspects and make the law as effective as possible.

Prospects: The cryptocurrency taxation law is an important step towards integrating Ukraine into the global crypto economy. It will ensure transparency and stability of the crypto-assets market, promote investment attraction, and foster the development of innovative financial products. This law will also help protect investors' rights and increase public trust in cryptocurrencies.

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