July 16, 2024
Latest Cryptocurrency News

Unregulated Ukrainian Crypto Exchanges Owe $81 Million in Taxes, Government Report Reveals

Cryptocurrency exchanges operating in Ukraine did not contribute more than $81 million to the national budget over the past decade, according to data provided by the Ukrainian government.

In a notice issued on August 2, the Economic Security Bureau of Ukraine reported that various crypto exchanges were responsible for approximately 3 billion hryvnia in lost taxes (equivalent to approx. $81 million) between 2013 and 2023. The bureau conducted an analysis of trading activity on exchanges created by Ukrainian residents, which recorded a total volume of around $55 billion in Bitcoin (BTC), Ether (ETH), and Tether (USDT) transactions during the same period.

Regarding the taxation of these transactions, Andriy Pashchuk, the deputy director of the Economic Security Bureau, stated that there are different perspectives on how they should be taxed, and the bureau would follow the provisions adopted by the deputies. However, he expressed concern about the ongoing delay in resolving this issue, as the state continues to lose tens of millions in taxes each month.

To address the regulation of cryptocurrencies, Ukrainian President Volodymyr Zelenskyy signed the ‘On Virtual Assets’ legislation into law in March 2022, creating a regulatory framework for digital assets in the country. Despite this development, the government has not yet implemented any amendments to the existing tax and civil codes to accommodate the legal framework as of August 2023.

Some Ukrainian crypto users on Telegram questioned whether they would be required to pay back taxes based on their transactions over the past ten years. They pointed to the government’s failure to adopt the regulations despite the law being passed in 2022, suggesting that timely implementation could have resolved the issue earlier.

It is worth noting that parts of Ukraine remain under threat of missile attacks following the Russian military’s invasion in February 2022, with Moscow reportedly occupying about 18% of the country in the eastern and southern regions. However, government buildings and operations in Kyiv remain under Ukrainian control.

Despite the challenges posed by the Russian invasion, some parts of Ukraine’s tech sector have continued to grow, with approximately 5% year-on-year growth in annual export revenues. Additionally, many industry professionals have expressed support for Ukraine’s military efforts.

Image by kjpargeter on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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