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Ukraine plans to impose an 18% income tax on virtual assets

ChainCatcher news, according to Cryptonews, Ukraine has made significant progress in regulating cryptocurrency taxation, with the National Securities and Stock Market Commission (NSSMC) releasing a comprehensive framework for the taxation of virtual assets. The proposal not only presents standard tax models but also includes preferential tax models, indicating that Ukraine is actively aligning its financial system with international digital asset standards. The chairman of the commission, Ruslan Magomedov, announced this proposal on Telegram on Tuesday, suggesting an 18% personal income tax on virtual asset gains, along with an additional 5% military tax, which serves as a special wartime tax primarily used to support national defense. Furthermore, the proposal sets preferential tax rates of 5% and 9% for specific categories, drawing on international experience and adjusting it to fit the Ukrainian legal framework.According to the proposed rules, taxable income can be defined as total income or net income after deducting expenses, typically recognized when payments are received or assets are exchanged for legal tender, non-virtual goods, and services. Transactions solely involving virtual assets do not trigger tax obligations under this framework. Additionally, the document provides tax guidance for activities such as mining, staking, airdrops, and hard forks, clarifying that activities like free token distribution, token creation, and virtual asset storage are exempt from value-added tax, while modifications of tokens or rewards for goods and services paid with cryptocurrency may be subject to taxation. Some transactions may qualify for tax exemption under Article 135 of the EU VAT Directive, particularly services related to payments; however, the commission also noted that such classifications may require further clarification and legal definition.

Economic slowdown may force the Federal Reserve to adopt a dovish stance, but the policy shift is still constrained by inflation risks

ChainCatcher news, according to TheBlock, analysts pointed out that last Friday's disappointing U.S. February employment report reinforced expectations for a Federal Reserve rate cut, which could boost risk appetite and lift the stock market and crypto assets. However, ongoing inflation risks driven by tariffs and supply chain issues still constrain a policy shift. Last week, the U.S. Labor Department's seasonally adjusted data showed that non-farm employment added only 151,000 jobs from January to February, marking the weakest February growth since 2019 and falling short of the 170,000 expected by economists surveyed by Dow Jones. Government layoffs, federal funding cuts, tariff uncertainties, and tightening immigration policies will weigh on job growth in the coming months. These factors may lead to a slowdown in hiring, suppress economic momentum, and reinforce deflationary trends. The Federal Reserve is facing a complex policy environment: weak employment supports rate cuts, but supply-side constraints and inflation concerns from geopolitical risks make it cautious. Uncertainty may continue to suppress the crypto market.Wincent Senior Director Paul Howard stated that the disappointing employment report underscores the necessity of rate cuts to stimulate the economy, and reducing deficit costs may be a government priority, which would benefit risk assets like crypto; CoinPanel trading automation expert Kirill Kretov pointed out that rising unemployment could improve Bitcoin and DeFi liquidity by raising rate cut expectations. Slowing wage growth suggests easing inflation pressures, making it more likely for the Federal Reserve to pivot sooner. The CME FedWatch tool shows that 55.3% of rate traders believe the June FOMC meeting is the earliest point for a rate cut this year, while the Atlanta Fed's GDPNow model has downgraded U.S. first-quarter economic growth to a contraction of 2.4%, which, if realized, would mark the first deflation since the first quarter of 2022, intensifying recession fears.Analysts indicate that global economic uncertainty has prompted an increase in bearish positions in the derivatives market, with the risk reversal indicator over the past 24 hours leaning more towards put options, reflecting market concerns about increased selling pressure. Options flow suggests that bullish sentiment may need to wait until the third quarter. Although $80,000 remains a key short-term support level for Bitcoin, the upside potential is limited. Before a new narrative emerges, the correlation between Bitcoin and the stock market may strengthen. Tariff risks persist, and volatility may increase ahead of the release of U.S. CPI and PPI data this week.
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