Finance Minister convened a working group to discuss and develop the regulatory framework for the taxation of cryptocurrencies. The news appeared on the official website of the Ministry this past Monday.

The experts group, will begin work on October 16 and will be required to identify possible options for the regulation of taxation of cryptocurrencies in the existing rules, and describe those cases where the old law is not applicable. The group presents at the Expert Council on tax issues, which will be held at the end of the year.

The bill on the taxation of cryptocurrencies, the work of 23 deputies, the Verkhovna Rada of Ukraine adopted in mid-September. It introduces an initial rate of 5 percent on all income from activities associated with digital currencies. By 2024, this rate needs to rise to 18%. According to preliminary calculations, even at the initial rate, the new tax regime will bring in up to $43 million to state coffers annually.

Later, in early October, Verkhovna Rada Deputy Yuriy Derevianko proposed a more lightweight version of taxation for the cryptocurrency industry in the country. His idea is to remove tax liabilities with the crypto investors and miners until December 31, 2029. As the MP explained, “we (approx. government) needs to regulate and legalize this huge segment which is the locomotive of the new economy. These people — the creative class, which is now in internal exile. We must create the conditions for development and exclude them from this emigration.”

While in Ukraine there are licenses for mining and trading cryptocurrency — this activity is still outside the legal field.