Ukraine's Financial Intelligence Accuses Crypto Exchanges of Underpaying More Than $80 Million in Taxes
Date: 2023-08-03 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
The Bureau of Economic Security of Ukraine claims that Ukrainian-created crypto exchanges have traded more than $55 billion since 2013
Ukrainian crypto exchanges underpaid in the form of tax deductions at least ₴3 billion (more than $80 million). This was reported by the Bureau of Economic Security (BEB) of Ukraine in its press center.
According to a financial intelligence statement, since 2013, trading platforms created by citizens of Ukraine have traded $55 billion. At the same time, the figure declared by BEB is indicated only in three areas: bitcoin (BTC), ether (ETH) and the stablecoin tether (USDT). How exactly the trading volume was calculated is unclear.
The BEB claims that they calculated the shortage due to the average commission percentage on the exchanges. The indicator was 0.8% of the turnover. Over the past ten years, exchanges have earned $445.5 million in commissions, according to financial intelligence. At the same time, exchanges still do not pay tax deductions to the country's budget, since "there is no regulatory framework," the press release says.
“There are different views on how these transactions should be taxed and BEB will act in accordance with the provisions adopted by the deputies. But it is obvious that while the issue drags on, the state continues to lose tens of millions of taxes every month. In addition, cryptocurrency transactions can be used to circumvent sanctions, withdraw funds abroad, illegal gambling and committing criminal offenses,” said Andriy Pashchuk, Deputy Director of BEB.
"T - Turbo"
Members of the local cryptocurrency community were, to put it mildly, surprised by BEB's statements. Users were puzzled by what tax approach the state should take in the face of a market drawdown:
“It’s interesting, if I, as an unqualified investor (or just a sucker)), have a 98% drawdown on alts, then what kind of tax credit do I get from the state?),” said one of the crypto market participants in response to BEB statements [spelling and the style of the author are preserved].
Mikhail Chobanyan, the founder of the oldest Ukrainian crypto-exchange Kuna, sees only one way out for such investors:
“You can get extra n***s from the military commissar and be sent to the front with a shovel. T-Turbota," Chobanyan wrote on his telegram page.
The BEB statement was made just two days after the media learned about the inspections of crypto exchanges by the National Bank of Ukraine (NBU). Chobanyan also confirmed the check by the NBU. It turned out that the National Bank of Ukraine was interested in the financial statements of several local crypto companies: Kuna, CoinPay, GEO Pay and Qmall. In connection with what the NBU check is connected, it is still unclear.
At the same time, in fact, since March 2023, the Ukrainian cryptocurrency market has been frozen. Since March, Ukrainian banks have stopped processing requests to withdraw cryptocurrencies to hryvnia and vice versa, citing technical difficulties. Later, as local media found out, the crypto market could fall under repression related to the struggle of the Ukrainian authorities against the gambling business. Against the backdrop of repression, Kuna has already announced that it will change its business focus from Ukraine to Europe.
