• Ukraine is creating new crypto regulations that are EU-inspired.
• The National Commission on Securities, the Ministry of Digital Finance, and the National Bank of Ukraine are all involved.
• The new regulations will focus on taxation matters and be adapted to European standards.
New Ukrainian Crypto Regulations
Ukraine is set to roll out new regulations for cryptocurrencies that have been inspired by regulations from the European Union (EU). Kyiv hopes to impose these rules before the end of 2021.
The Verkhovna Rada’s Financial Committee has been working on proposals for this legislation in conjunction with law enforcement agencies and several “crypto market players” who have also provided advice. International financial firm EY (Ernst & Young) and USAID Financial Sector Reform are also providing assistance as part of a “working group”. In the end, the central bank will have final say on the bill.
The new legislation will be based off of MiCA, which was adopted into EU law in 2022. This document will adapt European standards and provide comprehensive terms for cryptoassets while also focusing on taxation matters.
The committee’s First Deputy Chairman Yaroslav Zheleznyak expects the draft bill to be submitted to parliament during their summer session and adopted before 2021 comes to an end. He believes it should tax gains from cryptocurrency only after traders convert their coins into fiat currencies; crypto-to-crypto trades likely won’t be subject to any form of taxation.
UN Report Findings
A recent United Nations report found that ownership of cryptocurrencies is highest in emerging economies with Ukraine, Russia, and Venezuela topping the ranks.