Ukraine wants to tax cryptocurrencies 18% from 2024
Ukrainian regulators are preparing to start taxing cryptocurrencies at 18% from 2024. The country's lawmakers will vote on the proposal from this fall.
According to Forbes Ukraine, the National Securities and Markets Commission is preparing to publish a bill. The bill will be introduced to lawmakers at the next parliamentary session.
These proposals aim to create an 18% tax on cryptocurrency income. Committee member Yuriy Boyko said:
“We hope that the law will be passed in September and take effect from 2024.”
The Commission also proposed to empower the central bank in this area.
The draft also requires cryptocurrency exchanges to apply for an operating license. Kyiv has tried to amend cryptocurrency regulations to be more consistent with the EU. They want to introduce regulations in the spirit of the EU MiCA law.
Community reaction to this tax
This news was met with mixed reactions from the country's cryptocurrency community. Mykhailo Chobanyan, founder of the Kuna cryptocurrency exchange, warned that Kiev should not act hastily.
Chobanyan said it is “necessary” to find out “why, how and when regulation is needed” before enacting legislation.
And media outlet Forklog quoted a legal expert who said the 18% tax could deter investors and could “incite an outflow of crypto users and companies from Ukraine.”
Meanwhile, the central bank has called for regulations to “balance the need to protect consumer interests” with “financial stability”.
The bank added that regulations should “take into account the particularities of the country's legal and financial systems.”