The Verkhovna Rada of Ukraine Will Consider a Blockchain Initiative

News/Global News/The Verkhovna Rada of Ukraine Will Consider a Blockchain Initiative
08.10.2018 12:57

This week, the Verkhovna Rada of Ukraine plans to consider a proposal to make amendments to the Tax Code.

The new bill No. 9083-1 proposes tax holidays until 2029 for participants of the crypto currency market. In addition, the document addresses the need to define the following terms: “token”, “crypto asset”, “mining”, “crypto asset issuer” etc. According to the people’s deputy Yurii Derevianko, such actions can help the Ukrainian market to reach a new level and make it attractive for investments.

It is also proposed to introduce a moratorium on tax collection from mining equipment, for example, to eliminate customs duties or mark-ups in the domestic market.

“The bill will exempt all participants of the crypto currency market from paying taxes until

December 31, 2029, and will provide the status of an intangible digital asset, which determines the payment unit, to virtual currency”, says the deputy.

Mining will be positioned as processing of information, which ensures the Blockchain functioning, with the possibility of receiving remuneration designated in a crypto currency.

Introducing a moratorium on taxation of the crypto industry in Ukraine for the next ten years is а good move. The streamlining and legalization will push this segment towards the active development of a new digital economy. Crypto community is a category of people who, due to the lack of prospects in our country, have to migrate to countries, which are economically more developed.

“One of the priorities of this bill is to prevent the “brain drain” by creating favorable conditions for a new business direction,” says Yurii Derevianko.

The fact that such initiatives are being discussed at the Verkhovna Rada, confirms the serious intentions of Ukraine to match the status of а progressive European country. This is not the first time that the questions have been raised or the laws have been adopted, which are aimed at developing the Ukrainian Blockchain community. Let us remind you that the country is currently testing a blockchain-based voting system to be used during the next presidential election.

If the bill is adopted, the crypto currency in Ukraine will acquire an official status and will be exempted from taxation. Based on the results of the first reading, the National Bank of Ukraine will start exploring the possibilities of introducing digital currencies as a fully-fledged payment instrument to the market, as well as studying real prospects for creating crypto currency accounts by bank customers.

You can find more information on the bill No. 9083-1 here.