Verkhovna Rada, Ukrainian legislation body, is preparing a bill that will make crypto-conversions legal. It provides the taxation of cash and purchases of goods and services using crypto-conversions. When buying goods or services, 5% of the difference between the price of the token sold and the documented price of its purchase (or its cost) will be charged. Individuals will also pay 1.5% of military fees. The tax will not be paid by persons who spend different between cryptocurrencies.
At the moment, the tax is considered only a temporary measure, which will be in force from 2019 to 2025. According to the Ukrainian MP and author of the bill Alexei Mushak, the Ukrainian crypto community reacted positively to this innovation. This change to the country’s legislation can significantly legalize the work with the crypto in Ukraine. The regulator of the market will be the National Commission on Securities and Stock Market. It will also regulate ICO projects.
Researchers of the international Citibank, listing the risks associated with the distribution of crypto currency, noted that they “facilitate illegal activities and may play an important role in increasing the size of country’s shadow economy.” In particular, the complete anonymity of operations, which, according to researchers, has provided crypto-currencies increased popularity, is “particularly important for the shadow sector as a whole” and “can facilitate direct criminal transactions.” And Ukraine in this study fell into the top five countries with the highest risks, to which Ukraine’s economy may be subject.