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The Ukrainian government has passed a new law that ensures that the citizens of the country reveal the amount of cryptocurrency they hold. The new law is part of Ukraine’s efforts to tackle the issue of corruption. One part of the new law forces citizens to disclose if them or any of their close relatives hold cryptocurrency.
The aim of this legislation is for the Ukrainian government to legalize digital currencies so they can implement and collect income tax on cryptocurrency earnings and make sure that the newly emerging crypto sector of the country’s economy have enough transparency.
Cryptocurrencies began gaining popularity in Ukraine years ago and since then the interest of general public for digital money has only increased. Previously, the unstable economy of the country and the aftermath of the war with Russian-backed separatists, which caused a huge inflation in the national currency, made Ukrainian citizens think that perhaps it was better to store their savings in digital currency, primarily Bitcoin(BTC)trade.
But now, crimes like corruption and tax evasion are increasing and the government is looking for ways to reduce such activities, especially during a time when Ukraine wants to present a good image in order to join the European Union.
The legislation is an addition to the Corruption Prevention Law which was introduced and adopted in 2014. The amendment categorizes digital currencies as assets. This means that they can potentially be used in various violations of laws including money laundering, fraudulent schemes and even funding of terrorism.
The new law will come into effect next year in January.
Discussing Legalizing Crypto for the Economy
Ligamedia, a national news publication of Ukraine, broke the exciting news in October that the country’s authorities are discussing the possibility of legalizing cryptocurrencies. This came in effect after the country developed legislation to legalize gambling in the country.
The new developments and alterations in various legislative processes are thought to be Ukraine’s way of gaining control of their economy that was previously not fully lucid and was full of grey areas.
Although a global crackdown on digital currencies shows that cryptocurrency is becoming a new way for criminals to carry out money laundering and reports of terrorists using them to raise funds and transfer assets, have surfaced in the news, traditional fiat money is still the biggest and most commonly practiced currency of money laundering and carrying out illicit activities.
The steps Ukraine’s government is taking is to ensure that cryptocurrency stays safe for legal use for the citizens of the country.