Ukraine Confirms its Plan To Legalise Cryptocurrencies

Nov 3, 2018 at 19:30 Update Date :Nov 15, 2018 at 13:06 UTC

Ukraine has confirmed its plan of establishing regulatory frameworks to legalize cryptocurrency. Cryptocurrency, being the most evolving and upcoming technology gives Ukraine all the more reason to legalize it.

A new state-policy has been released for the purpose of viewing various cryptocurrency-related sectors by the Economic Development and Trade ministry in Ukraine, it will be put into effect from 2021.

The government of Ukraine is taking various measures to integrate the regulatory frameworks strictly. It will be governing the local cryptocurrency exchange market throughout 2018 and 2019. New features will be added to crypto trading platforms like Know Your Customer (KYC)  and Anti Money Laundering (AML). These are being added in order to help the local authorities monitor the market.

In order to recognise cryptocurrency as an asset class and an established industry, the government plans to dig into the cryptocurrency mining industry, smart contract protocols and taxation by the year 2020.

Researcher Denis Zarytsky reported that the Ukraine government has levied a tax of as low as 5%, payable by entities and individuals with cryptocurrency holdings. Whereas the rate of tax in countries like France and UK is 10%, a rate substantially higher than the Ukraine rate. Countries like Japan and Australia impose even higher taxes on the same because these regions recognise cryptocurrencies as properties. In October this year,  Yuriy Derevyanko, a member of the anti-corruption Movement of New Forces and a legislator of Ukraine raised his voice to completely abolish all the taxes implied on crypto by the end of the year 2020. According to him, cryptocurrency has a big future and can become one of the most major markets in Ukraine and the main reason to raise the country’s economy. He said that he thinks that a ban should be imposed on the taxes implied on crypto in the country for the next 10 years. He continued by saying that they should regulate and legalise the cryptocurrency segment because it will act as an engine for the new economy.

Currently, there has been an extremely positive response from the opposing as well as the ruling party of Ukraine on the long-term growth of the cryptocurrency sector and the blockchain technology.

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