Tax officials exposed the cryptocurrency fraud and non-payment of taxes totaling 51.8 million UAH

According to results of the monitoring 2020 and for 5 months of 2021, the State Tax Service recorded an increase in the number of operations with cryptocurrencies (crypto assets). Some of these operations have signs of money-laundering and / or tax evasion.

STS promptly carries out work on fixing and counteracting violations.

For example, specialists of the Anti-money laundering department of Main Directorate of the STS in Khmelnytsky region during an analytical research of the financial and economic activities of one company with foreign investment found out that its founders contributed significant amounts to the company’s authorized capital, not confirmed by their actual income.

In addition, there was identified a number of frauds with cryptocurrency, non-payment of investment income and military levy in the total amount of 51.8 million UAH  upon alienation of a share in the authorized capital in favor a non-resident enterprise liquidated at the time of concluding the relevant agreement.

According to Article 5 of the Law of Ukraine as of 06.12.2019 N 361-IX, the above mentioned operations carried out by the specified company belong to money-laundering operations.

Research materials were transferred to law enforcement agencies for a decision on entering information into the Unified register of pre-trial investigations.

STS shares the intention to create a legal framework for a civilized cryptocurrency market. STS conducts professional consultations on amendments to current legislation with the Ministry of Digital Transformation of Ukraine, the National Bank of Ukraine, the National Commission on Securities and Stock Markets of Ukraine, the Cyber Police Department of Ukraine and other central executive bodies to legalize the cryptocurrency market.

Communicate with the State Tax Service remotely using the “InfoTAX” service