Cars, apartments, boats and even drywall: that Ukrainians sell for Bitcoin

Cars, apartments, boats and even drywall: that Ukrainians sell for Bitcoin

While officials ponder status of cryptocurrency in Ukraine, citizens are willing to accept Bitcoin as payment.

Ukrainians are ready to use cryptocurrency for payments. And the list of property which they agree to exchange the virtual money is constantly expanding. On boards of free announcements you can find deals on the sale of land, apartments, businesses, boats, art objects, watches, and cars.

And the user OLX Artem posted an ad to sell for Bitcoin and Ethereum materials: in exchange for kryptonite at the rate on one of the Ukrainian exchanges he is willing to supply the buyer with the drywall, primer, Assembly foam, and dry mixes.

Publicity stunt or the real market

The price of the proposed sale of assets vary greatly. For example, for the equivalent of 25 thousand UAH. in Bitcoin you can buy watches for $8000 (about 0.5 BTC) KIA with a run of 114 thousand km Only 1.5 Bitcoin is a plot of 9 acres with an unfinished house at Sudak and 8 Bitcoin you can acquire dining area of 70 sqm in the center of Zaporozhye.

Luxury apartment in Kiev center with an area of 11 sq. m. overlooking the European square and Khreshchatyk ready to give for 19.5 BTC. Although considerable demand from Ukrainian crypto-magnates are not observed, the number of proposals is growing.

“The announcement of the sale of building materials for the cryptocurrency I posted about a week ago this idea was suggested to me by a friend. However, while no proposal has been received. And I’m not going to sell the drywall piece. But the batches of sheets, say, 100 — easily,” — said Artem.

Taxes will not loose

Lawyers warn that cryptocurrencies do not have in Ukraine, no status, and because to pay they can not. However, to make a deal legally. After all, according to our laws of any non-prohibited object of civil rights can be exchanged for another.

“That’s what happened in a controversial deal to “sell apartments for the cryptocurrency” — the swap agreement. Today it is the most “safe” from the point of view of legislation the way to use the cryptocurrency in the transaction because the parties are free to choose the subject of the contract of barter, be it an apartment, a cryptocurrency or any other property”, — explained the head of the banking and Finance practice of law firm and fintech Evris Sergei Papernik.

But even this decision does not relieve the parties of the transaction, e.g., purchase and sale of real estate from payment of all tax liabilities. In addition, you will have to spend money on notary. After all, without him the house will not be released to register in the registry of rights to immovable property.

“The seller pays 1% registration fee, if the housing is owned more than 3 years. If less, then pay a 5% income tax of the price +1,5% military tax. As a contract of barter, the buyer should not have to pay taxes in the Pension Fund” — estimated lawyer of legal firm “antique” Elizabeth Whiter.

The transaction can challenge

The lawyers say that to fully protect themselves from the risks of such transactions fail. Moreover, at stake for both sellers and buyers, and if desired, a barter agreement can be challenged in court.

To minimize the risk, lawyers recommend the use of smart contracts.

This solution allows to block the cash from the buyer beyond the control of the parties to the transaction the Deposit, that becomes available to seller after fulfillment of all prescribed conditions. For example, in the case of the sale of the apartment after entering the data about the new owner in the register. However, absolute guarantees it makes.

“If payment does not happen in any circumstances, the seller will be very difficult to collect the debt in cryptocurrency in court. Even if the plaintiff will be able to gather sufficient evidence for our conservative judges, many courts face challenges in the interpretation of the cryptocurrency and the proper way to protect the rights to it,” warned Papernik.

But there is, according to him, the risks and the buyer. In particular, the transaction of exchange of tangible property for money may be appealed in court. The grounds for such appeal can also be quite broad. Taking into account the gaps in legislation, the flight of imagination of our lawyers can easily choose the subject of the claim, for example, the recognition of fictitious transactions.

In addition, do not overuse and use of third parties and untested services for Contracting. Because the owner of the electronic wallet can independently manage their funds in a cryptocurrency. Any additional element in the calculations, experts warn, carries a risk of potential fraud

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