Ukraine Investigates Cryptocurrency Exchanges for Tax Evasion
The Economic Security Bureau (ESB) of Ukraine is currently investigating local cryptocurrency exchanges due to the loss of over $80 million in uncollected taxes. The ESB discovered that unregulated exchanges operating in the country were responsible for this significant tax loss. To address this issue, Ukrainian regulators have voted to impose an 18% tax on crypto gains starting in 2024.
Ukraine Intensifies Probe Into Crypto Exchanges
The head of Ukraine’s ESB, Andriy Pashchuk, revealed in an interview with Forbes Ukraine that the investigation is specifically targeting trading platforms with Ukrainian beneficiaries. The bureau is using data services like Chainalysis and Crystal Blockchain to meticulously track cryptocurrency transactions. In addition, they are utilizing open-source intelligence (OSINT) insights to assess the overall turnover of digital wallets on Ukrainian exchanges.
Pashchuk mentioned that a pretrial investigation is underway against entities involved in the local cryptocurrency market, but he did not provide specific details about its current stage.
Ukraine’s Crypto Regulatory Framework
Pashchuk acknowledged that there are differing opinions on how these transactions should be taxed, and the bureau will act based on provisions adopted by deputies. However, the delay in resolving this issue has resulted in significant monthly tax revenue losses for the state.
In March 2022, President Volodymyr Zelenskyy signed the “On Virtual Assets” legislation, establishing a regulatory framework for cryptocurrencies. The government has also expressed its commitment to aligning Ukraine’s tax and civil codes with this new legal framework.
However, many cryptocurrency users in Ukraine are concerned about retroactive taxation for transactions conducted over the past decade. The government’s delay in implementing regulations since the law’s passage in 2022 has created uncertainty and confusion within the crypto community.
Hot Take: Ukraine Cracks Down on Tax Evasion in Crypto Market
Ukraine is taking decisive action to investigate and address tax evasion in its cryptocurrency market. The Economic Security Bureau’s probe into local exchanges aims to recover lost tax revenues, which amount to over $80 million. By utilizing advanced data services and open-source intelligence, the bureau is meticulously tracking cryptocurrency transactions and assessing digital wallet turnover.
However, the delay in resolving taxation issues and implementing regulations has caused concern and confusion among Ukrainian crypto users. Clear guidelines and timely enforcement are essential to foster a transparent and thriving crypto ecosystem in Ukraine.
By
By
By
By
By
By