on the crypto
The Ukrainian press agency Ligamedia has published a report according to which the authorities are planning the legalization of the cryptocurrency in the near future. Given that legalization of gambling in the country has just taken place, it seems that the state is trying to take control of all the gray areas of the economy within national borders.
To push Kiev in this direction are also increasingly pronounced economic difficulties which the country is facing, following the undeclared war against Russia over the issue of Crimea. In particular, the Ukrainian government is proceeding towards the legalization of virtual currencies so as to be able to collect income tax and give more transparency to this sector of the economy. Everything could be triggered in 2024.
The popularity of cryptocurrencies in Ukraine
Cryptocurrencies are Popular in the country for years now and the interest in virtual money is showing constant growth. An attitude deriving from economic instability and very high levels of inflation, such as to push citizens to convert their savings into Bitcoin.
It should also be emphasized that the phenomenon of mining, with more and more farms planted within national borders in order to exploit the economic opportunities. A trend that was intercepted by the Kiev government, which once decided on the potential of digital assets decided to to ride the wave in order to create diversions to an increasingly stunted traditional economy. It remains to be seen how the new tax regulations will be accepted by the population and how they will affect everyday life.
Will the new cryptocurrency legislation have an impact on taxpayers?
It should also be stressed that Ukraine is a country very attractive in terms of taxation. Individual income tax is in fact attested to 18%, or at much lower levels than in France, Italy or the United Kingdom. It is therefore assumed that the new legislation will only increase state control, not the level of taxation. In particular anonymity could be affected which is one of the highlights of digital currencies, as the authorities will be able to know the amount of cryptocurrency held by tax payers. Ukrainians who carry out their cryptocurrency activities abroad cannot escape the imposition.
Tax evasion in Ukraine
What is the tax situation in Kiev? The unstable political situation in recent years has led the government to suppress the evasion of large corporations, but leaving openings for circumvention. A need also imposed by the country's attempt to enter the EU, for which the political and economic standards in force are insufficient. The accusations of the European Union could be better curbed by the introduction of new legislation on cryptocurrency, adding to a greater inflow of income into state coffers.
Precisely these reasons are added to the observation that one new legislation could make the framework for digital currencies more secure, helping their diffusion and encouraging the launch of companies able to carry out interesting projects in the sector of blockchain, a technology that the whole world is addressing. Besides the possibility of favoring mining activities in the area, thanks to which new jobs can be created.
