Ukrainians earn $850 mln on investments in crypto-assets in 2023 - Chainalysis

MOSCOW. March 19 (Interfax) - Ukrainian investors earned around $850 million on investing in crypto-assets in 2023, Ukrainian media quoted the Chainalysis analytical company as presenting its research findings.

"The crypto-sector has substantial investment potential, and its legalization in Ukraine would boost the economy and increase capital inflow," Alexander Bornyakov, deputy digital transformation minister, said in commenting on the research findings.

The research ranked Ukraine 12th in the world by the volume of revenue from investments in crypto-assets, ahead of Brazil, Japan, and Canada.

"We're working actively to provide a favorable regulatory landscape for companies and investors operating on this market," Bornyakov said, mentioning a bill on virtual assets registered in the Rada.

The bill envisions gradually increasing the base rate from 5% during the first three years to 9% over the five following years and from 18% in the following period. Using the Diia.City service, an investor would be able to choose between 18% tax on the financial result and 9% distributed profit tax.

At the same time, Daniil Getmantsev, chairman of the Ukrainian Verkhovna Rada's Financial, Tax, and Customs Policy Committee, said the Rada was much more likely to approve a model analogous to the taxation of securities yield rather than preferential taxation of crypto-assets.