Unregulated Crypto Exchanges Drain $81M Taxes

Unregulated Crypto Exchanges Drain $81M Taxes
Over the past decade, Ukrainian cryptocurrency exchanges have reportedly omitted more than $81 million from the national budget, as stated by the Ukrainian government's data.

The Economic Security Bureau of Ukraine revealed that unrelated crypto exchanges caused a loss of approximately $81 million in taxes from 2013 to 2023. These findings emerged from an analysis of trading activities on exchanges established by Ukrainian residents, involving about $55 billion worth of Bitcoin, Ether, and Tether transactions.

Andriy Pashchuk, the deputy director of the Economic Security Bureau, acknowledged differing perspectives on how to tax such transactions. He emphasized that the bureau would adhere to legislative provisions, but highlighted the ongoing loss of significant tax revenue while the matter remains unresolved.

Ukrainian President Volodymyr Zelenskyy introduced the 'On Virtual Assets' legislation in March 2022 to regulate cryptocurrencies within the country. However, as of August 2023, no modifications to the existing tax and civil codes have been enacted to align with the new framework.

Concerns arose among Ukrainian crypto users on Telegram, questioning the potential retroactive tax liabilities for the last ten years. Some criticized the government's failure to adopt the regulatory measures despite passing the law in 2022.

The aftermath of the Russian invasion in February 2022 still poses challenges, with roughly 18% of Ukrainian territory reportedly under Moscow's control. Despite these hardships, certain sectors of Ukraine's tech industry have exhibited resilience, experiencing approximately 5% year-on-year growth in export revenues. Additionally, strong support for Ukraine's military efforts is evident among industry professionals.

Also Read: Coinbase CEO and House Democrats to Talk Crypto Regulations: Reports

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