Declaring cryptocurrency for civil servants when submitting a declaration to NAZK

According to the current Ukrainian legislation, there is a separate procedure for declaring crypto currency for civil servants when submitting a declaration to the NAKC. To begin with, let’s start by defining what cryptocurrency is. Cryptocurrency is a digital currency that functions thanks to an asymmetric encryption mechanism. There are more than a thousand of them in the world, but bitcoin is the most popular. Due to the rapid growth of prices on the cryptocurrency market in Ukraine, attention to bitcoins has increased significantly. That is why it is compulsory to declare cryptocurrency by government officials. If you need to submit an appropriate declaration to the NAZK, Prykhodko and Partners lawyers will help you with this.

Features of cryptocurrency declaration

Cryptocurrency is one of the types of virtual assets. In turn, a virtual asset is an expression of value in a digital format. It can be traded digitally, transferred, used for payment transactions and investments. The Law of Ukraine “On Prevention and Combating the Legalization (Laundering) of Criminal Proceeds, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction” contains a similar definition of the term “virtual asset”. As a type of virtual assets, cryptocurrency is an asset that is created, alienated and accounted for, in most cases, in a distributed ledger.

Important: cryptocurrency does not certify the property/non-property rights of its owner. That is, cryptocurrency is virtual money in the form of tokens that were created and accounted for in a distributed ledger.

According to clause 6 of part 1 of article 46 of the Law of Ukraine, in the declaration of civil servants to the NAKC, information about cryptocurrency owned by a person or members of his family is indicated.

Information about cryptocurrency is entered in the corresponding field (“Type of object” → “Intangible assets”). If the corresponding name is not in the list, you must choose “Other”, specifying the abbreviated and full name of the existing asset. For example, BNB (Binance Coin) and others.

The amount of cryptocurrency is determined in the corresponding field according to the number of tokens or coins available to the person. This amount is indicated as of the last day of the period when the civil servant’s declaration is submitted to the NAKC.

Please note: the amount of cryptocurrency changes by converting it (exchange) to other types of crypto.

Assistance of professional lawyers in declaring cryptocurrency

It is quite difficult to independently fill out a declaration for submission to the NACP. Especially when it comes to the need to declare cryptocurrency.

That is why it is better to entrust this matter to professionals. Lawyers Prykhodko and Partners will help you prepare and submit a declaration for civil servants indicating the available amount of cryptocurrency in the account.

Do you still have questions? We are waiting for a preliminary consultation! To calculate the cost of a lawyer’s services for cryptocurrency declaration, fill out the form below.