Ukraine Initiates Major Steps To Legalizing Cryptocurrencies
Ukraine is joining global jurisdictions that are working towards eliminating the ambiguity around cryptocurrency regulation.
Ukraine Set To Adopt Cryptos
The Ukrainian Ministry of Trade has launched an initiative to have a law legalizing cryptocurrency related activities. In the proposal, the ministry also wants the government to categorize cryptocurrency related businesses. The details about the policy are contained in a report published by Ukrinform.
Reports indicate that the ministry has issued a statement regarding the proposed policy change. The ministry wants to have a conducive environment for conducting businesses in regards to virtual assets. Additionally, it wants to foster the adoption of cryptocurrencies.
The ministry also wants a clear definition of cryptocurrency, ICOs, virtual assets, smart contracts, mining and tokens. According to the report by Ukrinform, if the proposals go through, they will be implemented in two phases.
To date, the Eastern European country has not issued any regulations regarding the sector. However, reports about regulating the sector emerged about five months ago. This is after Alexei Mushak, a Congress member, known locally as a deputat, published a proposed framework for the laws on his social media account.
According to the draft, the law would be used to create an open environment. It had rules for reserving, deploying and exchanging cryptocurrencies, tokens and smart contracts.
Last month, Ukraine’s legislature suggested a sample bill that would have levied a 5% tax on locals and firms with cryptos. In regards to businesses, the base corporate and personal revenue would be taxed at 18%.
We also have another bill that is suggesting tax relief specifically for a variety of crypto assets. The bill was introduced by a member of parliament earlier this month. Sometime last week, a team from the Finance Ministry allegedly started working on a system for cryptocurrency taxation.
Elsewhere, the NBU is planning to release a crypto linked to local fiat, the hryvnia (UAH). In case the crypto is released, it will be centralized and subject to governmental controls.