The Ministry of economic development and trade of Ukraine initiated the adoption of the Concept of state policy on the legalization and classification cryptocurrency activities. This became known from the official press release of the Ministry.
The document reports that the state administration body intends to provide clear to all participants of the process conditions for conducting activities in the cryptocurrency sphere. Also, the Ministry will consolidate the definitions for key terms associated with the industry. A list of these terms includes such concepts as “virtual currency” (“cryptocurrency”), “virtual assets”, “initial placement of coins (tokens)”, “smart contracts”, “tokens” and “mining”.
The Concept implementation will take three years and will be held in two stages. During the first phase, the Ministers will determine the legal status of the cryptocurrency, will analyze the market and develop a competent policy for regulation of the industry. The second stage involves a more thorough work on the legislation in respect of the holders of the cryptocurrency assets and the ICO campaigns. Both stages need to be completed in 2021.
Recall that in Ukraine there is no clear regulation of the cryptocurrency industry, but work in this direction is by the authorities already for a long time. For the first time on the preparation of a bill to legalize digital currencies media reported in may from the post of the Verkhovna Rada of Ukraine Alexey Musaka in Facebook. Then it became clear that the Parliament is interested in creating a free and transparent cryptocurrency market have to comply with pertinent regulations on storage assets and operations with them.
In mid-September, Parliament began to consider draft law on the taxation of cryptocurrency activities. According to this document, all Ukrainian citizens will pay the government five percent of the profits obtained during the different operations with digital currencies. In 2024, the tax rate will rise to 18 percent.
Later, in early October, the Rada passed an alternative bill that simplifies the tax regime, but only for miners and investors. The deputies decided to exempt them from taxes for another ten years — until 2029.
Also in October, the Ministry of Finance of Ukraine, a working group on establishing the legal framework for tax policy towards cryptocurrency. On its work group report to the Advisory Council on tax issues at the end of this year.