Ukraine Set To Introduce Crypto Regulations Before Year’s End

• Ukraine is set to introduce new EU-inspired crypto regulations before the end of 2021.
• The National Commission on Securities and the Stock Market, the Ministry of Digital Finance, the National Bank of Ukraine (the central bank) are working on this plan.
• The draft bill is expected to be submitted in summer session and will focus on taxation matters.

New Regulations

Ukraine is set to roll out new, EU-inspired crypto regulations by the end of 2021. The National Commission on Securities and the Stock Market, the Ministry of Digital Finance, the National Bank of Ukraine (the central bank), MPs, law enforcement agencies and several “crypto market players” are currently working together with international financial firm EY (Ernst & Young) and USAID Financial Sector Reform to form a “working group” that will advise on these new regulations.

EU Inspiration

These regulations will take inspiration from EU Markets in Crypto-Assets (MiCA), which were adopted into EU law in late 2022.

Draft Bill

The Verkhovna Rada’s Financial Committee is preparing a draft bill for submission during their summer session which will be adapted to European standards. According to First Deputy Chairman Yaroslav Zheleznyak, it will be more thorough than previous legislation passed in 2021 and provide comprehensive legal terms for cryptoassets while also focusing on taxation matters. It is likely that traders would need to pay capital gains tax only when converting coins into fiat currencies but not when trading between cryptocurrencies.

Central Bank Say

The National Bank of Ukraine has been given final say over this legislation with weekly trading volumes being monitored via one of the largest UAH-trading platforms – KUNA crypto exchange – as an indicator for progress.

Year End Goal

Minfin reported that these rules could be adopted before year’s end if all goes according to plan with Zheleznyak confirming that parliament could pass it prior December 31st 2021.

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