Ukrainian Legislator Submits Bill To Make Cryptocurrency Tax-Exempt

According to reports, Ukrainian Parliamentarian and head of the legislature’s Committee on Tax and Customs Policy, Nina Yuzhanina, submitted Bill No. 7264 to parliament, proposing an amendment to the nation’s tax codes that would see any income or profits derived from the buying, selling and mining of cryptocurrencies exempted from taxation.

The bill, submitted on October 30, was one of several pieces of blockchain-related legislation proposed that month. It aims to contribute to the creation of “an effective mechanism for stimulating the market of cryptocurrency in Ukraine,” according to an accompanying note.

On October 26, the National Bank of Ukraine’s (NBU) High Council of Experts had convened a meeting that included members of the NBU’s board of directors, some members of parliament, financial market regulators, and other government officials, stakeholders, and experts, to discuss cryptocurrency regulation.

At the start of the meeting, NBU High Council Chairman Bohdan Danylyshyn explained that “the growing popularity of cryptocurrency in the world as well as in Ukraine requires an appropriate response from financial market regulators.” However, he also warned against the dangers of regulating the space too stringently, saying 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.” By contrast, clarifying the legal status of digital assets could “be the first step towards building a transparent” cryptocurrency market, and in turn promoting “the advancement of innovative technologies and the digital economy as a field of knowledge in Ukraine.”

The meeting resulted in the approval of “the recommendations of the High Council of Experts on the urgent need for determining the legal status of cryptocurrency in Ukraine.” Reports suggest that Bill No. 7264 is the result of these recommendations. 

Ukraine’s government has previously stepped into the blockchain space with public-private partnerships in the fields of data management and real estate. Around the time the real estate project was announced, Oleksandr Ryzhenko, the Head of the State Agency for eGovernance, said that his organization’s “ambition is for Ukraine to be one of the world’s foremost nations in establishing a comprehensive blockchain ecosystem, and the real estate sector forms an important part of our overall blockchain strategy.”