Ukraine to Adopt Cryptocurrency Transactions

Ukraine to Adopt Cryptocurrency Transactions

As soon as the law “On Virtual Assets” is passed, Ukrainians will be able to use, trade, and buy cryptocurrencies lawfully. Residents of Ukraine who possess cryptocurrencies will benefit from the law. This legislation will control the bitcoin market. Furthermore, Ukrainians may benefit from cheaper taxes and more options for new products and services.

This bill, according to Oleksandr Bornyakov, Ukraine’s Deputy Minister of Digital Transformation, will legalize virtual assets that regular folks can use. According to the official, a new industry for services that allow crypto coins to be used, exchanged, and held in payments will emerge. According to the bill, coins are not accepted as a form of payment in the country. Crypto, on the other hand, will soon be legally used to purchase products through a third-party organization that converts to Ukrainian hryvnia quickly, according to Bornyakov. This strategy is similar to foreign legal tenders that can be spent with an ATM card, such as the British pound.

In December, Ukraine’s parliament, the Verkhovna Rada, passed the bill on virtual assets for the first time. The bill has gone through several changes, and the Digital Transformation legislative Committee recommended its final adoption in June. Regulators in Kyiv were opposed to this modification. The government and corporate sectors unveiled a strategy in July to integrate cryptocurrencies into Ukraine’s economy within the next 36 months.

According to Bornyakov, cryptocurrency exchanges must obtain permission to lawfully operate in Ukraine and will be monitored by officials. The procedure of obtaining permits, on the other hand, is not the same as licensing. For foreign-based trading platforms in the mentioned country, there is no requirement to register as a legal business. They will, however, be obliged to meet a certain capital threshold. Bornyakov went on to say that enterprises with virtual assets are covered all over the world. The entry of crypto exchanges into Ukraine will be hampered if the country limits the registration of these platforms.

According to Bornyak, Digital assets will revolutionize the world, but, if it is utilized for unlawful transactions such as money laundering, their chances of becoming mainstream technology are nonexistent. Despite this prospective ruling, he stated that the Ukrainian government does not want to overregulate the cryptocurrency business since it will stifle its growth. Ukraine’s client verification criteria should follow international regulations. It’s important to remember that the bitcoin market is quite volatile and it is wise to know that there are risks associated with using this platform.

Certain parts of the law allude to crypto taxes, according to the minister, and relevant Tax Code revisions are being considered and will be submitted to the Rada in September. Ukraine wants to make crypto transactions non-VATable, and tax will be collected on the difference between the buy and sale prices. Furthermore, the Digital Ministry proposes that the individual tax rate be decreased from 19.5 percent to 5%.

The Author

Ajisebutu Doyinsola

Doyinsola Ajisebutu is a journalist and prolific writer who takes a special interest in Finance, Insurance, and the Tech world.