Ukrainian Crypto Exchanges Evade $81 Million in Taxes, Government Claims
Ukrainian authorities allege that crypto exchanges in the country have evaded over $81 million in taxes over the past ten years. Non-affiliated crypto exchanges are said to be responsible for a tax deficit of at least 3 billion hryvnia, equivalent to $81 million. The government conducted an analysis of trading activities on exchanges established by Ukrainian residents and estimated that the exchanges would have participated in about $55 billion worth of trading from 2013 to 2023. This significant amount of profit is tax-free due to the lack of a regulatory framework for crypto exchanges in the country.
- Ukrainian authorities claim that crypto exchanges have evaded $81 million in national taxes.
- The analysis shows that exchanges would have participated in $55 billion worth of trading from 2013 to 2023.
- Exchanges in Ukraine don’t pay taxes due to the absence of a regulatory framework.
- Discussions on regulation and taxation for cryptocurrencies have been ongoing in Ukraine.
- Final guidelines for taxation are expected to be implemented in the future.
Despite ongoing discussions on regulation and taxation, no modifications to the existing requisites have been implemented as of August 2023. In March 2022, the Ukrainian President enacted legislation that introduced a regulatory structure for cryptocurrencies. However, no changes to tax regulations have been made. The approval of MiCA by the European Parliament sets the stage for its implementation in 2025, which may also impact Ukraine’s tax policies. It is likely that more final guidelines and regulations will be implemented in Ukraine in the near future.
Hot Take: Ukrainian authorities are cracking down on tax evasion in the crypto industry, emphasizing the need for a regulatory framework. As more countries develop regulations for cryptocurrencies, tax evasion will become increasingly difficult, leading to a more transparent and regulated industry.
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