Ukraine To Legalise And Regulate Cryptocurrencies-The Ukrainian government in an official statement confirmed their plans to establish regulations to legalize cryptocurrencies in the country.
The Ministry of Economic Development and Trade have already started working on state policy in the field of digital assets. Hence, the main objective is to create a regulatory framework and set clear conditions for how digital assets can be used in Ukraine. This new policy will come into full effect by the end of 2021.
In the broad sense, the new policy plans to bring the activities related to cryptocurrencies in legislative ambit. Activities such as taxation, use of banking activities, ICOs and ITOs. Which currently fall in the shadows. And often lead to negative consequences for stakeholders, are being brought under the legal framework recognized by the government.
Regulatory framework Is A Two-Part plan
Ukraine To Legalise And Regulate Cryptocurrencies-During and throughout 2018 and 2019, the government of Ukraine will integrate a regulatory framework to strictly govern the local cryptocurrency market. The state policy will force the crypto trading platforms to implement a Know Your Customer (KYC) procedures. And an Anti-money Laundering (AML) system to assist authorities to oversee the market.
During 2020 – 2021, the government will dive into the crypto mining industry, smart contract protocols, and taxation. These as the second part of the regulatory framework. Which recognize cryptocurrencies as a true asset class and an established industry.
Researcher Denis Zarytsky stated that the government’s official document outlined a 5 percent tax payable for individuals with cryptocurrency holdings. Which is a lot lower than other nations such as France and the UK. That have over 10 percent tax on cryptocurrency investments.
The National Bank of Ukraine even considers creating a new Central Bank Digital Currency. A new digital currency would be useful since it will enable quicker and more cost effective fiat currency transfers throughout the country.