New Ukrainian Legislator Speech Requests a Crypto Trading Tax Freeze for the Next 12 Years
MP Yuriy Derevyanko is part of the anti-corruption Movement of New Forces. This group was created back in 2017 by Mikheil Saakashvili, who used to be a Georgian politician.
Derevyanko is presently also a Ukrainian legislator, who recently introduced a bill that would allow crypto traders to become exempt from paying taxes until 2030. In a speech on Monday, he encouraged the parliament to review his bill, which he presented to the conciliation board of The Verkhona Rada of Ukraine.
Derevyanko said, “The bill provides tax exemptions for all the participants of crypto market up to 31 December 2029.” To explain how important this bill is for the economy in Ukraine, he added, “I believe we need to impose a moratorium on taxation of [the crypto] area for the next 10 years. We have to regulate and legalize this segment, which will become an engine for a new economy.”
The bill was registered at the end of September, and it outlined an altered definition for multiple terms in the industry, including new classifications for cryptocurrencies, blockchain, mining, and tokens. Based on this request, the holidays for taxes will include any income that individuals and groups attain from deals involving cryptocurrency.
The main bill for cryptocurrency taxes was introduced in September as well, but it only offered a tax exemption until 2024. Instead of a 0% tax on cryptocurrency-related interactions, it offered a 5% discount for individuals, and an 18% discount for profits relating to businesses. Derevyanko is extremely against the original bill.
Ukraine has been vocal about their desire to establish a national digital currency, but in correlation to the local fiat currency already in place. The legislation offered is not just regarding cryptocurrency, even though that is what is being highly publicized. It also references regulatory provisions that concern money laundering, terrorist financing, and other criminal activities that need to be handled.
In June, the Ukrainian police found six fake cryptocurrency exchanges, for which they arrested four men. However, the users on these exchanges were questions as well at a later time.