Ukraine's Crypto Bill: Getmantsev Rules Out Payment Status, Tax Breaks

Cryptocurrencies to Remain Outside Payment Systems: Getmantsev Unveils Bill Amendments

The legislative landscape for cryptocurrencies in Ukraine is on the cusp of significant evolution. Following its initial passage, the bill aiming to define the status of digital assets is now slated for a robust second reading. Danyl Getmantsev, the influential head of the Verkhovna Rada's tax committee, has signaled a willingness to engage with constructive criticism and incorporate well-reasoned amendments. However, he remains resolute on several non-negotiable points, fundamentally shaping the future of crypto in the nation.

No Place at the Payment Counter: A National Security Stance

A key takeaway from Getmantsev's recent interview with "RBK-Ukraine" is his unequivocal rejection of cryptocurrencies as a legal tender. "It will not be a means of payment," he declared emphatically. This stance is rooted in concerns he describes as critical to national security and sovereignty. He draws a parallel, suggesting that allowing crypto as a payment method could be as precarious, if not more so, than permitting the circulation of foreign currencies like the Euro and US Dollar. This perspective underscores a cautious approach, prioritizing established financial stability over the speculative allure of decentralized finance.

Taxation Remains Firm: No Special Privileges for Crypto

Another unyielding principle Getmantsev champions is the absence of tax exemptions for cryptocurrency transactions. He explicitly stated that this is "the only thing" he is unwilling to compromise on, highlighting its paramount importance. While acknowledging that other aspects of the bill are open for debate and refinement, the tax framework appears set. This suggests that individuals and entities engaging with virtual assets should prepare for taxation similar to other income streams, rather than expecting preferential treatment. The preliminary outlook for taxpayers involved in selling virtual assets indicates an 18% personal income tax (NDFL) and a 5% military levy, as indicated after the bill's first reading on September 3rd.

Navigating Uncharted Territory: The Quest for Expertise and Prudence

The path to finalizing this groundbreaking legislation is not without its hurdles. Getmantsev openly admits to a scarcity of specialized expertise within the Verkhovna Rada, a situation that fuels his apprehension about potential missteps. He emphasizes the deliberate pace of the legislative process, warning against expectations of an immediate resolution. This measured approach is a testament to the complexity of regulating a nascent and rapidly evolving economic sector. Getmantsev even hinted at the possibility of the bill carrying over to a new parliamentary session, should the current one conclude its term before a final vote, a prospect that adds an intriguing layer of uncertainty to the proceedings.

A Unified Front: The National Bank's Agreement

Reinforcing this cautious regulatory outlook, the National Bank of Ukraine (NBU) has also weighed in. NBU Governor Andriy Pyshny has echoed Getmantsev's sentiment, confirming that the anticipated "legalization" will not extend to recognizing cryptocurrencies as a payment instrument. This alignment between the legislative and executive financial authorities paints a clear picture of the government's intended direction: to integrate and regulate crypto assets within a defined framework, but not to allow them to disrupt the established monetary system.