The Ukrainian government has reported a loss of 81 million in taxes from unregulated crypto

In 2022, Ukraine implemented a crypto bill that has now allowed the government to make changes to its tax code. This development was significant as it provided a legal framework for cryptocurrency operations within the country. However, despite the new legislation, many local exchanges in Ukraine continue to operate outside of this regulatory framework.

The crypto bill was a crucial step towards establishing clear guidelines for the taxation and regulation of cryptocurrencies in Ukraine. It aimed to bring the industry into the formal economy and ensure transparency and legal compliance. By amending the tax code, the government could impose taxes on crypto transactions and regulate the operations of cryptocurrency exchanges.

Nevertheless, some local exchanges still choose to operate outside the legal framework set by the crypto bill. This could be due to a variety of reasons, including the complexity and ambiguity of the regulations. Some exchanges may find it difficult to comply with the new tax requirements or may be unaware of the changes altogether.

Operating outside of the regulatory framework poses certain risks for both exchanges and users. It may expose them to potential legal issues and make it difficult for them to access certain services such as banking and financial intermediaries.

To further promote compliance and ensure the smooth functioning of the crypto industry, the Ukrainian government needs to address the challenges faced by local exchanges. This may include providing clearer guidelines, offering support and assistance, and increasing awareness about the benefits of operating within the legal framework.

Overall, while Ukraine has taken significant steps towards embracing cryptocurrencies through the implementation of the crypto bill, there are still challenges to overcome in terms of ensuring full compliance and integration of local exchanges into the regulatory framework.

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