Yuri Derevyanko, a member of the Ukrainian parliament, has urged the country’s legislature to reconsider the proposed cryptocurrency-related bill seeking to withhold taxes on cryptocurrency traders until a dozen years later in the year 2030.
The call was made during a speech delivered on the 1st of October by Derevyanko who also retains membership of the Anti-corruption Movement of New Forces launched two years ago.
The MP initially brought the bill forward at the Ukrainian unicameral legislature, the board of Verkhova Rada, on 26 September. Speaking in relation to taxes, the MP said,
“The bill provides tax exemptions for all the participants of crypto market up to 31 December, 2029. 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 bills registration was effected on the 27th of September, defining a number of aspects of cryptocurrency such as tokens, blockchain and mining in a slightly different way. In the document’s words, tax holidays will encompass all the revenue generated from crypto related deals, individuals and larger business entities inclusive.
The alternative bill has come in with marked differences when compared with the earlier bill brought forth by the ruling party’s representatives last month. Different taxation systems stand out as the major issue between the two bills.
The ruling party’s bill was registered on the 14th of September by Petro Poroshenko who is also a member of the Parliaments subcommittee, Bloc Solidarity. In terms of taxes, Poroshenko’s bill proposes that until 2024, both individual crypto traders and legal business entities will be subjected to 5% taxation. Upon reaching 2024, business entities’ taxes will be raised to about 18% whereas as individuals will still be paying 5% taxes.
The draft also went on to observe that with the taxes, the Ukrainian government will manage to boost its annual budget by 1.27 billion Hryvnia, which is the equivalent of 43 million US dollars. Apart from tax issues, the bill draft also covered regulatory course of action relating to criminal activities such as laundering and the use of cryptocurrencies to facilitate terrorism.
Adequate measures to counter criminal activity were emphasized as the country has already had its share of well-known crypto criminal activity marked by an earlier incident in June which involved a total of four individuals being arrested after authorities found out about 6 fraudulent digital currency exchanges being run in the country.
During the past 2-3 months, the Ukrainian government has expressed remarkable willingness to embrace blockchain and digital currencies. In July, the crypto community saw the country’s electoral commission conduct a voting trial which based its operations on blockchain technology. This was followed by the parliament engaging in a proposition for a possible tax bill relating to cryptocurrency later on in mid-September before the country’s national bank expressed interest in establishing a state digital currency in late September.