Bitcoin Users in Ukraine May See Higher Crypto Taxes on Profits if Parliament Gets Their Way

Ukrainian Parliament Wants To Tax Crypto Related Profits

It looks like the Ukrainian parliament is interested in taking a cut of the crypto investors’ profit. Lawmakers have recently proposed a tax of 5 percent to any profits related to cryptocurrencies like trading and mining cryptos. This goes for both individuals and commercial entities and they must report these profits in a separate way.

If the bill passes, commercial entities would see their taxes rise to 18 percent from January 2024 onwards. The bill defined cryptos as “a virtual asset in a form of a token, which functions as a mean of exchange or store of value” and defines what crypto mining is.

According to the data shown by the lawmakers, Ukraine was a hub for mining until 2014 but the situation changed because there was a lot of legal uncertainty regarding cryptocurrencies in the country and most of the companies migrated to other countries like Canada, Georgia and Finland.

Also, while there was no Initial Public Offering (IPO) in the country last year, there were 19 Initial Coin Offerings (ICOs), so this leads the company to start to regulate this new market.

At the moment, it is estimated that the Ukrainian population has about 98.7 billion of the national currency in cryptocurrencies, which can boost the coffins of the government after the taxes are applied.