Understanding Cryptocurrency Declaration in Ukraine
Date: 2024-02-02 Author: Dima Zakharov Categories: IN WORLD
The Legal Obligations:
According to Melnik, individuals authorized to perform government or local self-government functions are required to declare their assets, including cryptocurrencies. However, there is no specific legal framework for classifying and regulating cryptocurrency operations in Ukraine, making it unclear how ordinary citizens should declare their crypto assets.
Taxation Uncertainty:
Furthermore, Ukraine has not yet established a specific taxation framework for cryptocurrencies. Multiple draft laws proposing changes to the Tax Code exist, but none have been adopted in their current form. This leaves most Ukrainians unsure about the taxation of crypto transactions.
Declaring Cryptocurrency:
Melnik advises individuals to list their crypto assets under the "Intangible Assets" section when filing their declarations. This should include not only the declarant's own holdings but also those of their family members as of the last day of the reporting period.
Risks of Cryptocurrency Storage:
Melnik highlights the risks associated with publicly disclosing cryptocurrency wallet addresses, such as spam, phishing attacks, or even harassment. Additionally, the volatile nature of cryptocurrency prices can lead to fluctuations in the declared assets' value, attracting tax and law enforcement scrutiny.
Transparency and Documentation:
Melnik emphasizes the importance of maintaining comprehensive records and documentation for cryptocurrency transactions. This can include electronic or paper receipts for each transaction, which can simplify matters if questions about the source of funds arise.
Keeping a Cryptocurrency Activity Journal:
Lastly, Melnik suggests keeping a journal to record cryptocurrency-related activities, serving as a valuable source of information for future reference.
In a regulatory environment where cryptocurrency laws remain uncertain, individuals must exercise caution and diligence when declaring their digital assets in Ukraine.
