Ukraine: Economic Development and Trade Ministry Launches State Policy to Legalize Crypto
The Economic Development and Trade Ministry of Ukraine has initiated a âstate policyâ for the classification and legalization of crypto-related activities, Ukrainian state information and news agency Ukrinform reported Oct. 26.
The Ministry has reportedly issued an official press release stating that its purpose is to âcreate understandable conditions for conducting activities in the field of virtual assets and virtual currencies," and to usher in âadoption of the concept of a state policyâ for crypto.
To this end, it has proposed establishing legal definition s for key terms, including âvirtual currencyâ (âcryptocurrency,â) âvirtual assets,â Initial Coin (or Token) Offerings (ICOs or ITOs), cryptocurrency mining, âsmart contracts,â and âtokens.â
Ukrinform reports the concept is expected to be implemented in two stages, and will be completed in 2021.
Although Ukraine has not until now regulated crypto, the first signs the country was on track to its legalization surfaced in mid-May, when a member of the parliament, Alexei Mushak, attached a copy of an apparent draft legislation document for crypto to his public Facebook page.
The document outlined that the legislation aims to create a âfree and transparentâ digital asset market, outlining rules for storing, using, and exchanging crypto, digital tokens, and smart contracts at a state, entity, and individual level.
In mid-September, the countryâs parliament proposed a draft bill that, if signed into law, would levy a five percent tax on indi vidualsâ and entitiesâ crypto holdings. For businessesâ crypto-related profits, it proposed the basic corporate and personal income tax rate of 18 percent.
An alternative bill proposing specific crypto tax exemptions and a slightly different definition of various types of crypto assets was put forward by a Ukrainian legislator in early October.
As of mid-October, a dedicated working group within the Ministry of Finance has reportedly been working to elaborate the framework for crypto taxation.
In parallel, the National Bank of Ukraine (NBU) is considering a state digital currency tied to the local fiat currency, the hryvnia, which would be centralized and remain under government control.Source: Google News Ukraine | Netizen 24 Ukraine