- Ukrainian regulators have announced their plans to raise taxes on crypto gains.
- The draft law makes it possible to work according to EU rules.
Ukrainian regulators have announced their plans to raise taxes on crypto gains starting in 2024. Both individuals and businesses involved in cryptocurrency transactions would be subject to an 18% tax on their profits under the proposed plan.
The National Commission for Securities and the Stock Market plans to charge a flat-rate tax of 18% on revenue from cryptocurrency investments. The announcement sparked mixed responses from the Ukrainian crypto community. Moreover, military service will be subject to a tax rate of 1.5%.
Ukraine’s Efforts to Establish Regulations for Crypto
According to the report, the National Commission for Securities and the Stock Market will present the draft law to parliament during the next session. Moreover, the crypto exchanges and brokerages operating in Ukraine need to get operating permits from the commission under the drafted law.
The Ukrainian Commission wants to develop itself and the Central Bank with regulations over the crypto sector. This move follows Ukraine’s recent effort to align its crypto regulations with the European Union’s Markets in Crypto-Assets (MiCA) legislation.
Yuriy Boyko, the commission member, stated
We hope that the law will be adopted in September and come into force in 2024.
Moreover, Boyko added that the draft law makes it possible to work according to EU rules. If an exchange or a crypto trader wants to operate in the market, they must comply with these rules.
The proposed tax rate of 18% on crypto gains signals the government’s intention to regulate the crypto market within the country. Moreover, this decision highlights Ukraine’s initiatives to adapt to the shifting financial landscape and make sure the nation gains from the rising popularity of digital assets.
