Cryptos Should Have Legal Status — Deputy Finance Minister Of Ukraine
The legal status of cryptocurrencies and their taxation should be indicated at the legislative level. This opinion was expressed by Serhiy Verlanov, Ukraine’s Deputy Minister of Finance, in his interview with the journalist of the newspaper "Ekonomicheskaya pravda".
The official stated that the tax matter of digital assets is exaggerated. To date, there are only two types of crypto operations, such as mining and trading at crypto exchanges. As for the crypto trading, the profit should be taxed in accordance with the individual income tax, the size of which is 19.5%.
According to Verlanov, Switzerland is an example of a state with effective taxes on digital assets. Cryptocurrencies, according to the country’s laws, are considered as movable property, therefore, transactions with them are subject to the same taxes as vehicles. The Swiss Federal Tax Administration regularly updates the rates of bitcoin and ether on its official website.
While there is no legal base for cryptocurrencies in Ukraine, they are considered a common subject of circulation, the Deputy Finance Minister stated. At this stage, digital assets aren’t tangible.
By analogy, he cited the example of the computer game “World of Tanks”, where you can buy a military unit at one price, and then reshape it and sell it several times more expensive.
As long as there is no legal status of cryptos in the country, they are listed as property or funds in declarations. Currently, it is impossible to proceed to their taxation and control, since there is no legislative base for them. If regulatory acts are adopted, the regulators should be the National Bank of Ukraine or the National Securities and Stock Market Commission, and the crypto exchanges should become tax agents, Verlanov believes.
As previously reported, the Verkhovna Rada of Ukraine is developing a draft law that defines digital currencies as financial assets.