Friday, January 27, 2023
HomeNewsUkraine Sees Crypto as an Intangible Asset

Ukraine Sees Crypto as an Intangible Asset

The Ukrainian National Agency for the Prevention of Corruption (NAPC), in recent guidance, defined digital currencies as a type of intangible asset.

First reported by Forklog, the definition by the Ukrainian agency is in accordance with the Financial Action Task Force (FATF) view on the cryptocurrencies.

This came before the upcoming tax season in the country, as income declarations must be submitted before April 30.

The report also clarified that Ukrainian nationals need to declare their crypto holdings as well as the holdings of their family members, similar to any other intangible assets.

“The document must include the name of the asset, the date of the last cryptocurrency purcUkraine Sees Crypto as Intangible Asset
hase by the declaring entity, the number and total cost of a certain type of cryptocurrency tokens belonging to the declaring subject or a member of his family as of the last day of the reporting period,” the guidance added.

Clarifying stand on crypto

It also detailed that the value of the digital currencies should be indicated in terms of their value in Ukrainian fiat at the exchange rate of the National Bank of Ukraine.

Ukraine’s guidance on digital currencies followed similar clarification by Germany’s Federal Financial Supervisory Authority (BaFin), which is now considering cryptocurrencies as financial instruments.

BaFin also referred to the FATF guidelines on digital currencies to come up with its own view on the nascent market.

Ukraine authorities decided to adopt FATF guidelines to tackle money laundering and terror financing threats by introducing a bill last year. It was passed in December.

Though Ukraine recently published its crypto guidance, its residents and officials were already declaring their digital asset holdings to the tax department for years.

Meanwhile, illegal activities using cryptocurrencies are also rampant in the east European country. Last August, the Ukrainian authorities seized illegal crypto mining hardware from a state-owned nuclear power plant.


Most Popular