What Does Verkhovna Rada Plan on Cryptocurrency? Details Explained

Published on 07 Aug. 2018

“Cryptocurrency. So what does the VR have in mind?” This is how the Facebook post of the people’s deputy Oleksii Mushak starts. He is the author of the taxation initiative for the cryptocurrency owners in Ukraine.

Yesterday, the report about the cryptocurrency legalization and introduction of taxes on operations was published. Oleksii Mushak decided to explain certain moments once again since he was assailed with questions from the cryptocurrency users yesterday. As an example, the following was asked: “So if I’m not doing good, and I’ve decided to buy cryptocurrency for a rainy day, I have to pay a purchase tax, and the reverse process won’t be taxed?”

The author of the initiative explains that it consists of two law projects, the texts of which are ready and will be registered at the beginning of September. One project concerns the general regulation and the second is specifically about taxation.

It is essential for me, like for the majority of the crypto community, to specify the spheres where the state has a right to interfere. Our vision - only the operation crypto-fiat. Everything else, including the transactions crypto-crypto, won’t be regulated,

- Mushak writes.

As for the taxation, this project aims at helping those who want to receive a legal income from cryptocurrency and token operations.

The scheme is the following: you buy cryptocurrency - pay no taxes. You keep it; it grows in price - you pay no taxes. You decided to sell cryptocurrency for hryvnia and receive a legal income - you pay 5+1.5% of the difference,

- the author explains.

He also mentions that the project will solve a sore subject for the ICO teams - the possibility to work with the banking system. Introduction of crypto business into the legal field will also ease another big problem of the industry - arbitrary behavior of the law enforcement bodies.

The users naturally asked which tax instruments would be used to confirm the difference for taxation. The deputy answered that there would be no problems if the operations were carried out through the exchanges, licensed in Ukraine. As we’ve mentioned earlier, the National Commission on Securities and Stock Market will be responsible for the exchange licensing, as well as the procedures and requirements for the ICO launching.

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