Ukraine Is Preparing A Crypto Bill To Enable Bitcoin Payments
Ukrainians could be the next to legally hold, exchange, and spend cryptocurrencies like Bitcoin (BTC), a government official revealed. This would be the case if the proposed crypto bill is adopted.
The Ukrainian Digital Transformation Ministry proposes lower crypto taxes, in addition to allowing payments in cryptocurrencies, as the new legislation seeks to pave the way for the industry to enter the country.
Ukraine to become a market for crypto services
The new crypto draft law would make cryptocurrencies “a completely legal and common phenomenon for the government and the society,” Ukraine’s Deputy Minister of Digital Transformation Oleksandr Bornyakov told the financial publication Minfin.
According to Bornyakov, the Ukrainian government doesn’t want to “hinder the development of this new industry by over-regulation.” Bornyakov sees crypto as the future for both his country and the world.
He expects the development of an entirely new market for crypto services, with the new legislation allowing Ukrainians to legally exchange and declare their crypto holdings.
The new draft wouldn’t recognize cryptocurrencies as means of payment, but the legislation will allow crypto payments through intermediary services that provide instant crypto-to-fiat conversions, said the deputy minister.
The draft law, which will expand the possibilities of crypto use, is being prepared for adoption in the second reading, after it was voted through in the Ukrainian parliament in December.
Roadmap for crypto to enter the country
The service providers will be required to receive a work permit in Ukraine, according to the draft law designed in a way that will enable foreign businesses to smoothly enter the country. This is also done to protect Ukrainian crypto users, and boost the economy.
The legislation therefore proposes for the establishment of a new regulatory body – the National Service for Regulation of Virtual Assets.
According to Bornyakov, “this is a simpler procedure than licensing.” Conditions for obtaining a permit won’t be difficult, he explained.
The companies won’t be required to register a legal entity in Ukraine. Bornyakov elaborated:
“The main thing is to prove that there is the necessary amount of capital, and there are no people from the sanctions lists among the founders.”
“We understand that the business with virtual assets is global, so if we set the conditions for registration in Ukraine, cryptocurrencies simply will not enter our country”
The list of conditions for obtaining a permit, including for non-residents, are clearly defined in the text of the bill.
According to Bornyakov, the draft bill doesn’t address the issue of crypto mining in any way, since the Ministry considers it to be “a completely legal activity,” which does not require additional regulation.
“Work is still underway on the text of the bill on amendments to the Tax Code,” said Bornyakov, revealing a new proposal to lower the rate for individuals to 5% from the current 19.5%.
