Draft bill seeks ‘tax holiday’ for crypto companies in Ukraine

A bill proposed by lawmakers in Ukraine could see the country’s fledgling cryptocurrency sector benefit from a “tax holiday,” as part of a package of measures designed to foster the development of the sector there.

Filed before the Verkhovna Rada, Ukraine’s parliament, the tax exemptions proposed by the bill would potentially benefit the sector until the end of 2029, in what would be a significant development for the country’s crypto entrepreneurs and related entities.

Lawmaker Yuri Derevyanko, of the Movement of New Forces party, has guided Bill 9083-1 through several parliamentary hurdles already, including passing committees responsible for budgetary police, EU integration, customs and financial industry policies.

If passed into law, the bill would change the country’s tax code, providing tax breaks on all income earned from cryptocurrency business, including gains from crypto transactions.

The measures would apply to private individuals as well as businesses, in addition to exempting the import and sale of mining equipment from applicable VAT.

The bill also goes on to define cryptocurrencies in Ukraine’s statute books for the first time, qualified as intangible digital assets with ownership recorded in a distributed ledger. Mining is described as a “data processing activity,” for which digital assets are paid as a reward.

Derevyanko said introducing a 0% tax rate for the crypto sector would be instrumental in its development within Ukraine. He told local media, “I think that it is necessary to introduce a 10-year tax moratorium in the crypto space. We must streamline and legalize this huge sector, which will be the engine of the new economy.”

The bill becomes the second before Ukraine’s parliament, following similar proposals from the president’s Solidarity party. Under these proposals, a tax rate of 5% would be introduced for the sector up to 2024, falling short of the measures proposed by Derevyanko.

For the most part, Ukraine’s crypto sector is currently unregulated, with previous bills seeking to establish regulations tied up in the parliamentary system, without notable progress being made.

If adopted, the latest proposals would be the most significant attempt to date to write cryptocurrency into domestic law, as well as establishing more favourable conditions for crypto businesses to set up in Ukraine.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Ukrainian Farmer’s Market now accepts Bitcoin BCH, other crypto

A Farmer’s Market in the Ukrainian capital of Kiev now offers its patrons the ability to buy their fruits and vegetables with Bitcoin BCH and other cryptocurrencies. The Bessarabian market is testing a project with crypto payment processor Paytomat that allows users to pay for a variety of products using one of the 11 supported cryptocurrencies. It’s another example of the continued advance of digital currency as a legitimate alternative to fiat.

According to Paytomat’s operational director, Aleksandr Kuinnoi, “At the moment this feature is working in test mode at a single vendor. With the help of a cryptocurrency wallet app customer can scan QR-code. After this, the customer is automatically transferred to the cryptocurrency converter page where he needs to enter the purchase price in hryvnias. Next, the customer transfers payment to merchant’s wallet in cryptocurrency of their choice and after the merchant gets a notification of funds being received, this transaction comes to a logical conclusion.”

The pilot program settled on the Bessarabian market due to its popularity. Kuinnoi explained, “The main idea is the symbiosis of traditions and innovations. We chose [the] Bessarabian market because it is a well-known tourist attraction and cryptocurrencies are a universal payment tool in any country.”

Paytomat has become one of the most productive crypto payment solutions in the Ukraine. It has rolled out a number of payment services that are now seen in beauty salons, schools, online stores, cafes and clinics around the country. It now works with more than 330 merchants and provides a variety of solutions, including point-of-sale terminals, QR code solutions, web panels and a plugin for WordPress to allow a site to act as a cryptocurrency gateway.

Cryptocurrency regulation in the Ukraine is approaching quickly. It still isn’t ready to be accepted as a recognized legal tender, but the more it is accepted as a fiat alternative, the better its chances are of mainstream adoption.

As proven by the recent stress test, Bitcoin BCH has been shown to have one of the strongest cryptocurrency blockchains. It’s because of this, in part, that the digital currency is a favorite among retailers, as it provides fast transaction times at extremely low costs. As each day brings new adoption of the cryptocurrency, it will continue to prove itself as the perfect global retail digital currency.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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