Russia and Ukraine await new regulations regarding cryptocurrencies in their respective countries as citizens seek proper measures for conducive cryptocurrency transactions.
Cryptocurrency Regulation In Ukraine
A newly drafted bill on cryptocurrencies was announced in Ukraine by a Ukrainian MP, Alexey Mushak in a BlockchainUA conference in Kiev during the past week. The bill seeks to leave crypto to crypto trading outside the purview of the state regulations. Reports say the law has already been filed in the Ukrainian parliament.
The new law seeks a distinction between the term cryptocurrency and tokens as the virtual assets were given appropriate definition. The document defined cryptocurrency as a type of virtual assets that can serve as a means of exchange as well storage of value, while the tokenized asset is described as a tool to certify property or the rights of the holders that relates to the responsibility of the issuer.
Notably, the bill seeks a reduction of tax for profits made by the industry. This plans to subject the earnings of private individuals and corporate entities to 5% tax until 2024. This is in contrast to the thought of the deputy finance minister, Sergey Verlanov, who proposed a 19.5% tax on cryptocurrency related activities.
Alternative Cryptocurrency Regulation In Russia
An alternative draft regulation has been introduced in Russia as well. This was made by the working group enabled by the Russian Union of industrialists and entrepreneurs.
Similar to Ukraine’s but in a different way, the new bill divides digital assets into three groups which are, digital tokens, security tokens, and cryptocurrencies.
Now, the Central Bank of Russia will hence oversee cryptocurrencies in the country; this will include issuing licenses to providers of exchange services in the country.
So also, startups that get funding through initial coin offering will not require a license, but the issued token is to serve as evidence of a civil law contract between the projects and their investors. Meanwhile, issuers of security token will continue to operate under the rules of the traditional securities.
The authors of the bill include some big wigs in the country such as Vladimir Potanin, the president of the mining and metallurgical company, Nornickel; Mikhail Oseevsky, the CEO of Rostelecom, billionaire Viktor Vekselberg, owner and president of Renova Group, and the president of the Skolkovo Funds.
The new bill is expected to fill the gap of the deficiencies in the previous cryptocurrency regulations, as the interest of cryptocurrency business is defended.
Notably, Mexico and France have also introduced cryptocurrency regulations in their countries to annex the dividend of the industry.