Ukraine Announces Its Plans To Legalize Cryptos Until 2021
The Ministry of Economic Development and Trade of Ukraine intends to approve the policy regarding the legalization of digital currencies, according to the Ministry’s official website.
The government is initiating the development of the Concept for state policy in the field of crypto assets, which will be aimed at creating the clearest and most transparent ecosystem for the promotion of digital currencies and tokens in the country. To date, the status of cryptocurrencies in Ukraine is still undefined at the legal level, so the government doesn’t have a clear vision concerning the tax system for digital assets, the development and drafting of smart contracts.
In 2017, Ukraine entered the top ten countries in the world, whose citizens used cryptocurrencies most actively. Crypto mining brings an annual income of $100 million in the country. The Better Regulation Delivery Office (BRDO) reported the same profit generated by Ukrainian companies from initial coin offerings (ICO) and initial token offerings (ITO) in 2017–2018.
Thus, the Ukrainian crypto industry is a “shadow” sector without adequate protection of users' rights by the government. That is why the authorities intend to legalize the crypto sphere in two phases, the first one is scheduled for 2018–2019, and the second one will be carried out in 2020–2021.
At the first stage, the government will define the status of digital currencies and then start monitoring trends and problems of the crypto market to improve the regulatory system. At the second stage, the authorities will determine platforms, that will provide crypto wallets to their users, as well as develop legislation to regulate crypto assets and ICOs.
As previously reported, Ukraine will implement tax rules for mining and crypto transactions.