The Digital Transformation Ministry has filed a bill with the Rada to adjust the tax code to deal with cryptocurrency transactions.

The Digital Transformation Ministry has filed a bill with the Rada to adjust the tax code to deal with cryptocurrency transactions. Developed with ‘the blockchain community,’ the draft law defines such concepts as virtual asset, crypto asset, distributed ledger, token, and an asset-backed token. “The first feature is the 5% tax rate on personal income for investment profits from the sale of crypto assets for a period of 5 years,” reports the Ministry’s press service. Sales of crypto assets are not subject to value-added tax, or VAT. Last month, government and business representatives signed a memorandum of cooperation on implementing distributed registry technology, or blockchain.