Ukraine is again trying to tame the crypto world, and now on the horizon is a new draft law No. 10225-1 from the Ministry of Digitization. Its main goal is to make the circulation of cryptocurrencies civilized and the budget a little fuller. But let's look at the details to understand whether this will be a breakthrough or another bureaucratic wall.
What do they offer?
For individuals:
5% tax on crypto profits for the first three years (to lure newbies).
9% tax for the next five years.
And then — the classic 18%, because the freebie has to end sometime.
For legal entities:
Transactions with crypto-assets are exempt from VAT, except for "service tokens". What is it? It seems that we will figure it out in practice.
Cryptocurrency service providers:
18% on profit. Thank you for not adding VAT (yet).
A special bonus for Diya.City residents: a choice between 18% income tax or 9% on withdrawn capital. Sounds interesting, but who is willing to sign all these memoranda?
Will it get easier?
The key change should be a transparent reporting mechanism, which is now like a maze of mirrors. But the real focus is the choice of the regulator: the Ministry of Statistics and the National Bank of Ukraine act as the main supervisors of the market in this project, which can theoretically reduce chaos.
Is it profitable for you?
For owners of small crypto portfolios (such as those who buy $50 per month), a 5% tax does not look bad. But if your income rises with Bitcoin (98k USD, remember), prepare to pay more — and that's before factoring in the 5% military levy.
What does it all mean?
The new bill looks like an attempt to create a balance between replenishing the budget and attracting crypto investors. However, many questions remain. How will operations on foreign exchanges be controlled? How will "service tokens" be distinguished? And most importantly, will there be room for the freedom that is at the heart of cryptocurrencies?
Conclusion: if this draft law is adopted, Ukraine will have to prove its ability to play by its own rules. And for us crypto-enthusiasts, it's time to prepare our calculators.
