Ukraine made a statement about tax loss due to unregulated crypto exchanges.
The Ukrainian government has announced that more than $81 million has been lost to the national budget due to the non-taxation of unregulated crypto exchanges since 2013. Despite the implementation of the country’s new crypto law, local exchanges still remain unregulated.
Ukraine announces tax loss due to crypto exchanges
Ukraine’s Bureau of Economic Security stated that the tax loss between 2013 and 2023 is responsible for at least 3 billion hryvnia. The bureau examined the commercial activities of the cryptocurrency exchanges in the country and determined this loss. During this period, the volume of crypto assets such as Bitcoin, Ethereum and Tether totaled around $55 billion.
Ukrainian President Volodymyr Zelenskyy signed a law called ‘On Virtual Assets’ in March 2022, establishing a regulatory framework for cryptocurrencies in the country. However, as of now, the necessary regulations have not yet been fully implemented.
This has sparked debate among many Ukraine-based crypto users about whether taxes should be reimbursed and the government has not adequately embraced the regulations.
Although Ukraine has faced many challenges due to the Russian invasion in 2022, parts of the technology sector are still growing, with a 5% increase in export revenues. Many industry professionals also support the country’s military efforts. However, the lack of regulation in the crypto sector has resulted in tax losses, and there are ongoing debates about the need for the government to create a better regulatory framework.
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