Ukraine releases guidelines on crypto income declaration

• The Ukrainian National Agency for Prevention of Corruption has asked users to declare crypto holdings as “intangible assets.”
• Users must convert the value of cryptocurrencies to Hryvnia, the national currency of Ukraine, as per the rules. 

The Ukrainian National Agency for Prevention of Corruption (NAPC) has recently released some rules and guidelines and rules on how users can declare crypto holdings as “intangible assets.” An excerpt from the guidelines reads:

The document must include the name of the asset, the date of the last cryptocurrency purchase 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.

Users must convert the value of cryptocurrencies to Hryvnia, the national currency of Ukraine, as per the rules. The declarant should use the exchange rate provided by the National Bank of Ukraine on the previous business day of the declaration.

Notably, the NAPC has adopted the Financial Action Task Force on Money Laundering’s (FATF) definition of cryptocurrency. It defines crypto as “digital representations of value, and/or unit of account, and/or a store of value, but without having the status of legal tender in any jurisdiction. Thus, it can be used to carry out transfers, trade or for payment and investment purposes.” 

Income declarations in Ukraine are to be done by politicians, officials, people with income from foreign nations and self-employed citizens who are not registered as private entrepreneurs. They must declare their income by the end of April.