Ukraine is preparing to legalize cryptocurrencies by the summer of this year, with lawmakers disclosing that the bill is already fully drafted.
Ukraine’s Crypto Legalization Plan
The chairman of the Finance, Taxation, and Customs Policy Committee of the Verkhovna Rada of Ukraine, Danylo Hetmantsev, stated that Kyiv expects to “legalize” cryptocurrencies before summer.
Hetmantsev shared, “I can promise you for sure that we will do everything possible. We want to ensure that this law passes [the Rada] by the summer of this year at the latest.”
According to local media outlets, Hetmantsev’s assurance seems significant as he mentioned that lawmakers are still addressing several issues, including taxation and incentives for crypto adoption. For example, Hetmantsev revealed that Ukraine plans to ensure that crypto transactions are taxed similarly to other investment assets, with a regular system of tax rates. Another proposition includes a “transition period” for individuals who have already invested in cryptocurrency assets but cannot provide proof of their purchases.
Hetmantsev added that Kyiv will not offer any “bonuses or benefits” to companies and individuals working with cryptocurrencies. He explained that Kyiv has consulted international experts on legalization issues, who believe that any “preferential regime” could create an uneven tax burden on traditional industries involved with cryptocurrencies.
Regarding regulation, Hetmantsev argued that the National Securities and Stock Market Commission should take charge of crypto regulation. However, it currently lacks the “institutional capability” to oversee the industry. Instead, he suggested that the central bank, the National Bank of Ukraine, might temporarily take responsibility.
Lawmakers are also discussing several other issues, including how regulators and law enforcement officials can apply financial surveillance methods to cryptocurrency transactions.
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