Ukraine Plans to Fully Legalize Crypto-Currencies within Three Years!
The government in Kievintends to legalize crypto-currencies and comprehensively regulate the fin-techsector as part of a new public policy developed by the economy ministry. Theprocess may take up to three years to complete but ultimately the industrybuilt around digital assets should become a valid part of the nation’s economy.
Parliament to Adopt Laws which can cover ICOs and Smart Contracts!
The new regulatory conceptwill be executed in two phases. The legal status of crypto-currencies, tradingplatforms and other entities dealing with digital assets must be determined in2018 and 2019.
According to the documentarranged by the Ministry of Economic Development and Trade, the next stage i.e.in the year 2020-2021, would involve identifying crypto-currency walletproviders and protective platforms as “subjects of primary financialmonitoring.” The status is typically granted to traditional financialinstitutions such as commercial banks and insurance companies. Forklog reportedthat Ukrainian lawmakers are expected to draft and adopt legislation regulatinginitial coin offerings (ICOs), tokens and the use of smart contracts. A numberof bills have been filed in Ukraine’s parliament, since last year but verylittle progress has been made toward their agreement.
The first three drafts fromlast fall were meant to regulate the circulation of digital coins, stimulatethe crypto-currency market and amend the Ukrainian tax code to regulate thetaxation of profits related to digital assets. In the last couple of months,two bills introducing tax breaks for businesses and individuals dealing withcrypto-currencies have been proposed by Ukrainian legislators from different politicalparties.
Companies to Gain Access to Banking Services
Budget receipts and Foreigninvestments regulation of the sector will increase as per the new strategy hopewhile stimulating the development of the digital economy. In less than twoyears, Ukrainian companies have risen over $100 million through ICOs andcrypto-currency mining businesses are generating $100 million annually. Thedaily volume of trading crypto-currencies with the Ukrainian hryvnia hasreached almost $2 million and the Ministry of Economic Development claimsUkraine is among the top 10 countries by a number of crypto-currency users.
The ministry’s initiative isthe second attempt this year to coordinate the efforts of Ukrainianinstitutions aimed at adopting a comprehensive legal framework for thecrypto-currency space. Ukraine’s Financial Stability Council in July hasapproved another regulatory concept for the sector, and in the month Januarythe National Security Council formed a working group tasked to finalize thedifferent proposals. Soon a new document will have succumbed for approval bythe Cabinet of Ministers.