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 Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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.