September 26, 2020

Ukraine legalizes cryptocurrency and mining by 2021-2022

Ukraine legalizes cryptocurrency and mining by 2021-2022

The Government of Ukraine expects to legalize the circulation of cryptocurrencies and mining within two to three years.

This was stated in the press service.Ministry of Digital Transformation, published following a meeting of department heads with representatives of the Ukrainian blockchain community, which took place on October 7.

Recall that on September 27 at the brand presentation“State in a smartphone”, the heads of the ministry first announced plans to legalize cryptocurrencies. The head of the Ministry of Digital Affairs, Mikhail Fedorov, stressed that cryptocurrencies are now not prohibited in Ukraine, but they do not have an official status either.

“People who do this (cryptocurrency) should get out of the gray zone and start paying taxes.”- said the head of the Ministry of Digital.

October 7 During an open meeting of the Blockchain Community and State of Ukraine, the representative of the Ministry of Digital Affairs, Alexander Bornyakov, said:

“The plans of the ministry - after determiningstatus to make mining run legally. That is, those who are engaged in mining, could do this without fear that they are in some kind of "gray zone".

In general, the state plans for the next two to three years:

  • legislatively define terminology; work out a compromise version of taxation in the cryptocurrency sphere;
  • by the summer of 2020, implement the recommendations of the International Anti-Money Laundering Group (FATF);
  • introduce blockchain technology into state registries;
  • legalize mining and attract international cryptocurrency exchanges to the country.

The meeting participants noted that while theremutual understanding between the deputies who oversee the issue of legalization in parliament, the Ministry of Finance and the market, and work to create a legislative and regulatory framework is carried out jointly.

In addition, in the near futureSign a memorandum with the inter-factional parliamentary association of the Verkhovna Rada Blockchain4Ukraine, which includes more than 50 deputies, the Blockchain Association of Ukraine (BAU), the Office of Effective Regulation (BRDO) and other structures

For his part, acting Director of the Strategy and Reform Department of the National Bank of Ukraine Mikhail Vidyakin, commenting on the process of legalizing cryptocurrencies, noted:

“In Ukraine, understandable forall participants have a concept - definitions, exchange of information, who regulates how and how, issuing licenses, limits, etc. It will be great if the Ministry of Finance takes over it ... A regulator of market behavior in this area should be defined, since without it consumer rights may be infringed and investors. ”

Vidyakin called for the prompt adoption of the necessary legislation and the development of a strategy to determine the place of crypto assets in the development of the financial market of Ukraine.

“Now we are developing the“ Development Strategyfinancial sector 2025 ”, in which regulators accept offers from the market. Documents and a form for submitting proposals in electronic form - on the NBU website in the section "Reform of the financial sector"- stressed Vidyakin.

Cryptocurrency Regulation Conceptdetermines the National Securities and Stock Market Commission of Ukraine as the main regulator in the cryptocurrency market and assigns to it, in particular, licensing of cryptocurrency exchanges and crypto exchangers. At the same time, the State Financial Monitoring Committee is assigned control over cryptocurrency exchanges, and the Ministry of Finance and the State Fiscal Service are assigned control over the payment of taxes on income from operations with cryptocurrencies.

The legalization of cryptocurrencies in Ukraine for the first timethey started talking back in 2018 during the time of the government of Vladimir Groisman. In particular, then they planned to develop taxation rules for cryptocurrency transactions. The government also instructed to introduce cryptocurrency mining into the classifier of types of economic activity (CEDA), which legitimizes this activity.

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