Ukrainian Legislator Urges Parliament to Cut Crypto Taxes Until 2030

The Ukrainian opposition has offered an alternative bill on cryptocurrencies that would eliminate all taxes for crypto incomes until 2030.

A Ukrainian legislator has urged parliament during a speech on Monday, October 1 to review his alternative bill on cryptocurrencies that offers to freeze taxes for crypto traders up to 2030.

MP Yuriy Derevyanko, a member of the anti-corruption Movement of New Forces founded back in 2017 by former Georgian politician Mikheil Saakashvili, introduced his version of the bill at the conciliation board of The Verkhovna Rada of Ukraine, the country’s unicameral parliament.

“The bill provides tax exemptions for all the participants of crypto market up to 31 December, 2029,” Derevyanko stated. He further explained the importance of such a decision for the Ukrainian economy:

“I believe we need to impose a moratorium on taxation of [the crypto] area for the next 10 years. We have to regulate and legalize this segment, which will become an engine for a new economy.”

The alternative bill, registered September 27, offers slightly different definitions for cryptocurrencies, blockchain, mining, and tokens. According to the document, tax holidays will refer to all income from crypto deals both for individuals and entities.

Derevyanko’s document opposes the main bill, which several MPs of president Petro Poroshenko’s party has put forward earlier this September. Per the above graphic, the main difference between the two bills consists of their approach to taxation.

As Cointelegraph has explained, the first draft offers a five percent tax for individuals and legal entities operating with virtual currency assets, such as coins and tokens. Starting January 1, 2024, the tax for business revenues from crypto will rise up to 18 percent. This, the document states, might help Ukraine draw an additional 1.27 billion hryvnia ($43 million) to the budget annually from 2019-2024.

As Cointelegraph reported earlier, Ukraine has repeatedly expressed its desire to create a national digital currency tied to local fiat (hryvnia).

Ukraine’s draft cryptocurrency legislation also contains regulatory provisions against money laundering, terrorist financing, and other criminal activities.

Earlier in June, Ukrainian police arrested four men who were suspected of running at least six fake cryptocurrency exchanges. Later, the authorities questioned users allegedly deceived by fraudulent exchanges.

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Switzerland First in Ranking of Top 10 Most Blockchain-Friendly Countries in Europe

BlockShow’s rankings of the best European countries for opening a blockchain company puts Switzerland at the top of the list.

Switzerland is ranked number one in a list of the top ten European countries for starting a blockchain company, according to a study released by blockchain conference BlockShow Europe 2018.

In the list of best countries for starting a blockchain company, Gibraltar and Malta follow Switzerland in second and third respectively. The study consisted of 48 European countries that were examined for rankings by Initial Coin Offering (ICO) regulations, regulations on crypto as a payment service, and taxation frameworks for crypto.

Switzerland is known as a crypto-friendly nation due to both its establishment of a virtual currency hub, “crypto valley,” in Zug and its status as a tax-free haven for crypto investors. Gibraltar has reportedly attracted 200 ICOs before the planned launch of its Gibraltar Blockchain Exchange (GBX), and Malta, the “blockchain island,” has welcomed major crypto exchanges Binance and OKEx recently.

BlockShow also released a poll this week on blockchain-based app Polys that allows users to vote on the leading women and companies in the EU blockchain space. The winners of the poll will be announced during the BlockShow conference at the end of this month in Berlin.

At the beginning of February, the European Commission announced the launch of the EU Blockchain Observatory and Forum as part of their aim to unite the economy around blockchain. However, more recently, newly approved EU privacy laws – which come into effect on May 25 – arguably conflict with the decentralized nature of blockchain technology.

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US: Seminole County Florida To Accept Crypto For Tax Payment

Seminole County to accept BTC and BCH for payment for taxes to remove risks connected with credit card usage, such as fraud and identity theft.

The Seminole County, Florida, tax collector Joel M. Greenberg announced May 14 that the county will begin accepting cryptocurrency for payment for various services this summer in order to eliminate heavy fees and improve payment accuracy and efficiency.

According to a press release, the county will begin accepting Bitcoin (BTC) and Bitcoin Cash (BCH) to pay for services, including property taxes, driver license and ID card fees, as well as tags and titles. The Seminole County Tax Collector will reportedly employ blockchain payments company BitPay, which will allow the county to receive settlement the next business day directly to its bank account in US dollars. Greenberg commented on the initiative:

“We live in a world where technology has made access to services on demand, with same-day delivery and the expectation of highly efficient customer service and we should expect the same from our government. The aim of my tenure in office is to make our customer experience faster, smarter, and more efficient, and to bring government services from the 18th century into the 21st century and one way is the addition of cryptocurrency to our payment options.”

With this move, the county reportedly aims to remove risks connected to credit card usage, such as fraud and identity theft. According to BitPay, Seminole county is the first government agency to use the company’s services.

Earlier this month in the state of Arizona, a bill that would have allowed state residents to pay taxes using crypto was amended, removing the provisions which obligated the state to accept crypto. Instead, the bill merely obliges the Department of Revenue to “study” whether a taxpayer may “pay the taxpayer’s income tax liability by using a payment gateway, such as Bitcoin, Litecoin or any other cryptocurrency.”

Also this month, the city of Berkeley, California moved forward with an initiative to apply blockchain technology to public financing for community projects. The pilot project also aims to decrease the minimum price of a municipal bond from $5,000 to $10-25, which would allow more people to invest in municipal projects they support. Vice Mayor Ben Barlett added that, should the political process allow it, the city could consider issuing a type of token which would function much like a municipal bond in providing city funding.

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