Ukrainian Bill Tries To Exempt Cryptocurrency Mining and Transacting Profits From Taxation

Ukrainian parliament has been on the receiving end of a bill which is targeted towards bringing amendment in the country’s tax code and exempting income arising from cryptocurrency dealings and their derivatives through transacting and mining activities.

Nina Yuzhanina, the head of the Committee on Tax and Customs Policy of Ukrainian parliament, submitted the bill on October 30. The note accompanying the bill stated that:

“In order to create an effective mechanism for stimulating the market of cryptocurrency in Ukraine, the logical step is the exemption from taxation of profits of enterprises…Income from cryptocurrency operations should not be included in the calculation of the total monthly (annually) taxable income, and transactions with cryptocurrency and mining crypto goods are classified as transactions that are not subject to taxation.”

Also Read: Cryptocurrencies And Tokens To Be Regarded As Securities In New Zealand

Two such bills were submitted in the past to the parliament regarding building of a proper legal framework for cryptocurrencies. The first bill was submitted in October’s first week and proposed considering cryptocurrency such as Bitcoin as a property which can be exchanged for availing other goods and services.

The second bill submitted just one week hence was titled “On the stimulation of the market of cryptocurrencies and their derivatives in Ukraine,” and proposed treating cryptocurrencies as mainstream financial assets. The third bill wishes to come up with crypto derivative and cryptocurrency provisions.

Read: Ukranian Parliament Receives Another Bill To Treat Bitcoin As Financial Asset

A meeting was held on 26^th October by the High Council of Experts of the National Bank of Ukraine (NBU) for discussing cryptocurrency regulations. NBU issued a press release subsequently stating that, “During the event, the recommendations of the High Council of Experts on the urgent need for determining the legal status of cryptocurrency in Ukraine were approved.”

National Bank of Ukraine board of directors, financial market regulators,  representatives of related government departments, committees of the Verkhovna Rada of Ukraine, heads of banking associations, people’s deputies of Ukraine as well as members of various scientific and expert circles graced the event with their presence.

National Bank of Ukraine Council Chairman Bohdan Danylyshyn said at the onset of the meeting that High Council of Experts members cannot just stand there without doing anything. He exclaimed that :

“the growing popularity of cryptocurrency in the world as well as in Ukraine requires an appropriate response from financial market regulators.”

“I am convinced that any attempt to restrict the functioning of such a market may have the opposite effect, namely, to facilitate the shadowing and delegitimization of processes associated with it. In my opinion, creating the necessary legal framework will be the first step towards building a transparent and clear market for cryptocurrencies. In turn, it will promote the advancement of innovative technologies and the digital economy as a field of knowledge in Ukraine,” he elaborated.

Also Read: Russia to License Cryptocurrency Miners and Tax Mining Income

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