L&M Finance Group
2019-11-18 15:15

DEPUTIES INTEND TO LEGALIZE OPERATIONS WITH CRYPTO ASSETS

On November 15, the Verkhovna Rada of Ukraine registered a draft law aimed at legalizing operations with crypto assets. Although the text of the draft law is not available at the time of writing this article, it is known from public sources that the draft law was developed by the blockchain community, the Blockchain4Ukraine inter-factional parliamentary association, the Office of Effective Regulation and the team of the Ministry of Digital Transformation.
Of the main points in the draft law, the following should be highlighted:
  • at the legislative level, the basic concepts of the crypto industry and the correlation between them will be defined, namely: "virtual asset", "crypto-active", "operation with crypto assets", "distributed registry", "token" and «token-asset»;
  • features of taxation of operations with crypto assets will be spelled out: 5 percent - tax rate on personal income for investment profits from the sale of crypto assets; investment income from operations with crypto assets is calculated as the positive difference between the income received by the taxpayer from the sale of the crypto asset and its value, which is determined from the amount of documented expenses for the acquisition of such a crypto asset and / or the creation of such a crypto asset; transactions on the sale of crypto assets will not be subject to value added tax.
Although we understand that the draft law will cause a lot of debate in the legislature and at the moment we cannot be sure that it will be adopted in its original form, a rather high positive draws the attention of our deputies to such an important area of the digital economy as the crypto industry.