• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Ukraine will soon legalize Cryptocurrency transactions in the country

Ukrainian residents will use, trade legally, and purchase through cryptocurrencies as soon as the law "On Virtual Assets" is adopted. The law will benefit residents of Ukraine who own cryptocurrency. The cryptocurrency market will be regulated through this law. In addition, Ukrainians might obtain lower taxes and have more alternatives for new products and services.

Oleksandr Bornyakov, Ukraine’s Deputy Minister of Digital Transformation, said that this law would legalise virtual assets which common people can use.

The official predicts a transformation in a new market for services that permit crypto coins to be used, exchanged, and stored in payments. The bill states that coins are not a method of payment in the country. However, crypto will soon be legal to be used to purchase items through a third-party entity that converts instantly to Ukrainian hryvnia, expressed Bornyakov. This approach is similar to foreign legal tenders like the British pound that can be spent through an ATM card.

Ukraine's parliament called Verkhovna Rada went through the first reading of the virtual assets bill in December. The bill has passed through various revisions, and in June, its final adoption was recommended by the Digital Transformation parliamentary Committee. This update had opposition coming from Kyiv regulators. In July, the government and private sectors showcased the plan to reach cryptocurrency integration into Ukraine’s economy within the next thirty-six months. Looking for more ways to invest in cryptocurrency? Click here.

Cryptocurrency exchanges need to secure permits to legally operate in Ukraine and will be subject to monitoring by regulators, expressed Bornyakov. However, the process of securing permits is not equivalent to licensing. There is no need to register as a legal entity for foreign-based trading platforms in the said country. However, they will be required to reach a specific capital requirement. Bornyakov further explained that there is a global coverage for businesses that have virtual assets. If the country regulates the registration of these platforms in Ukraine, this will hamper the entrance of crypto exchanges in the country.

The establishment of customer verification requirements of Ukraine should be aligned with international recommendations. Bornyakov believes that digital assets will revolutionise the world. However, its possibility of becoming mainstream technology will be eliminated if it will be used for illegal transactions such as money laundering. He emphasised that despite this possible ruling, the government of Ukraine does not want to overregulate the cryptocurrency market as it will hamper its development. Take note that the cryptocurrency market is very volatile. Thus, there is a risk involved when engaging with this platform.

The bill creates a new regulatory board - the National Service for Regulation of Virtual Assets. This national agency will regulate crypto companies that will ask for permits to operate in Ukraine. Regulators such as the Ministry of Finance, National Securities and Stock Market Commission (NSSMC), and the National Bank of Ukraine (NBU) will be furnished with their responsibilities. The NSSMC will monitor crypto derivatives while the NBU will take care of stablecoins.

The minister said that certain provisions in the bill refer to crypto taxation, and the possible amendments to the Tax Code are being studied and will be submitted to the Rada in September. Ukraine would like to implement that crypto transactions are non-VATable, and tax will be obtained from the variation between the purchase and sale values. Furthermore, the tax rate for individuals is proposed by the Digital Ministry to be reduced from 19.5% to 5%.

History Of Cryptocurrency In Ukraine

It has almost been two years since Bornyakov announced that Minister Mikhail Fedorov would authorise the legalisation of cryptocurrencies. Furthermore, he said that individuals who are involved in cryptocurrencies should be honest taxpayers as he envisions Ukraine to be generating revenues from cryptocurrency traders.

The momentum to legalise cryptocurrency as part of the Digital Transformation ministry to simplify transactions with the Ukrainian government with a digital service. Fedorov said that transactions with the government should be non-invasive and convenient. It should have a similar feeling when a person transacts with Airbnb, Booking, or Uber.

This article only serves as a guide and not financial advice.

About The Authors

Stefano Mclaughlin

Stefano Mclaughlin - For the first five years of his career, Stefano worked as a financial advisor on state and local tax matters, developing internal marketing technology for his multinational tax business. With over 12 years of experience designing high-performance web applications and interactive interactions, Stefano is now a marketing technology specialist and founder.

Recent Articles

  • Crypto Accessories Every Crypto Holder Should Know About

    Crypto Accessories Every Crypto Holder Should Know About

    These days, crypto accessories and gadgets can be found everywhere. There is a vast selection of products available for purchase, ranging from cryptocurrency wallets to devices that make buying and storing NFTs easier. If you enjoy cryptocurrencies and would like to own some, trade some, and play around with it, read on. These Bitcoin accessories will quickly become some of your favorite electronic gizmos.

  • MoviesCouch Hollywood Movies Download – Down, Down The Drain

    MoviesCouch Hollywood Movies Download – Down, Down The Drain

    It looks like one site will let down film lovers who used to frequent it for movies that they can download for free. If you’re looking for MoviesCouch Hollywood movies download, prepare to be disappointed.

  • Best Lotion For Jerking Off That Won't Damage Your Skin In 2022

    Best Lotion For Jerking Off That Won't Damage Your Skin In 2022

    Many people nowadays are looking for the best lotion for jerking off that will enhance their self-pleasure moments while not harming their skin.

  • Gerard Butler Net Worth - The Real Leonidas Of Sparta

    Gerard Butler Net Worth - The Real Leonidas Of Sparta

    The Scottish actor Gerard Butler net worth is $40 million. Gerard originally majored in law, but he gradually drifted toward acting and grew to be one of Hollywood's most known faces.

  • Keanu Reeves - $380 Mill Net Worth, Career, Earnings And Lifestyle In 2022

    Keanu Reeves - $380 Mill Net Worth, Career, Earnings And Lifestyle In 2022

    A musician, actor, producer, and philanthropist, Keanu Reeves net worth is $380 million. He has acted in scores of movies throughout the years, some of which have grossed billions of dollars at the box office. He is likely best known for the John Wick and The Matrix movie series.

  • MoviezAddiction.Website – Feeding People’s Craving For Films, TV Shows

    MoviezAddiction.Website – Feeding People’s Craving For Films, TV Shows

    Addicted to movies and TV shows? Not wanting to make you become more obsessed, but have you heard about MoviezAddiction.website, a source of thousands of films and shows you can download?

  • Can You Trust Rhino Air Hockey?

    Can You Trust Rhino Air Hockey?

    Work and family take up so much of our time these days that it's surprising how little time we have left for our enjoyment and fun. But just because we're adults doesn't mean we have to make our whole lives about work. You need to play Rhino Air Hockey Table to add joy to your life, relieve stress, and connect with other people and the world around you.

  • How Much Is A Mail Order Bride? Mail Order Bride Cost Estimated

    How Much Is A Mail Order Bride? Mail Order Bride Cost Estimated

    Interested in mail order bride pricing? Our estimations of mail order bride cost will help you on your quest for a foreign soulmate. Read this to learn more!

  • Head Of AmCham Guatemala Juan Pablo Carrasco De Groote: The “Art Of The Deal” (Guatemala-style)

    Head Of AmCham Guatemala Juan Pablo Carrasco De Groote: The “Art Of The Deal” (Guatemala-style)

    For over 10 years, the head of AmCham Guatemala has been Juan Pablo Carrasco de Groote – the unchanging face of the chamber of commerce.