Ukranian legislature Yuri Derevyanko is proposing amendments on the nation’s tax code to introduce tax breaks on all cryptocurrency dealings. The tax exemptions will cover all transactions involving digital assets including buying and importing of cryptocurrency mining equipment for a whole decade starting January 2019.

The tax exemption will be applicable to both organizations and individuals transacting in the cryptocurrency industry. The lawmaker argues that the tax exemption will make Ukraine an attractive cryptocurrency market for both local and international investors.

Ukraine’s state-backed cryptos

Ukraine has recently announced plans to develop state-backed cryptocurrency. The nation is warming up to a cashless economy and believes that the e-Hryvnia- country’s proposed crypto is a perfect alternative to cash. Ukraine is looking to address the problems of high cost of production and issuance of cash, infuse transparency in payments and curb counterfeit money, not to mention track all transaction history for all time.

The newly proposed bill on cryptocurrency comes with new regulations on and blockchains. The bill describes cryptocurrencies as “intangible digital assets” which individuals have the right to possession as stipulated to in the distributed ledgers.

Cryptocurrency mining has been referred to as data processing that involves servicing of the distributed ledgers in which individuals are remunerated with digital assets for their service.

Other proposals on cryptocurrencies

The Bill 9083-1 proposed by Derevyanko makes it three the total number of bills proposed regarding the cryptocurrency industry in Ukraine. Derevyanko proposal is an alternative to an eaelier proposal by Alexei Mushak, fellow legislature who was also advocating for tax breaks to individuals and business dealing in cryptos.

Unlike Derevyanko’s bill, Mushak’s proposal was seeking to have all cryptocurrecy dealings taxed 5% until the end of2023 after which the dealings shall be taxed 18% going forward. Despite the much publicized proposals about cryptocurrency, Ukraine’s government has done little in facilitating the industry’s growth in the country.

The cryptocurrency sector still has little jurisdictions. However, Ukraine’s parliament- Verkhovna Rada has announced that it was going to adopt new law acknowledging cryptos as real financial assets and not virtual assets as it is currently described as.