The government of Ukraine has taken a definite step to legalize digital currencies and assets according to a public statement released on its website.
The European country is foremost among countries in the world in terms of its openness to the crypto industry. Ukraine is unsurprisingly one of the top ten countries in the world with the highest number of digital currency users. The encouraging statistics is partly responsible for the impressive rate of crypto startups and successful ICOs in the country. Despite its familiarity and popularity with the industry, the country does not have a legal framework explicitly addressing cryptocurrencies and other digital assets.
Cryptocurrency has Great Potentials
The statement, which was published by the Ministry of Economic Development and Trade of Ukraine, is a definite move to embrace the digital-currency sector as a technological possibility of great potential. Ukraine, while boasting great numbers has been slipping slowly, and part of the new policy’s objective is to address it. The cryptocurrency sector might define a whole lot of events in the coming years, and Ukraine would as well not be left behind.
The new policy has been constructed against a timeline of two years, and has been scheduled to already be in complete effect by 2021. An excerpt of the published statement, regarding the new policies reads:
“They aim to determine guidelines for token classification. Additionally, they will be touching upon issues that relate to smart contracts and cryptocurrency mining. Therefore, this work will be ongoing. There will be two separate stages to the implementation of this new state policy. The hope is to have this policy in full effect by 2021. In addition to the new state policy, the government notably has brought in a new taxation bill. This outlines a new 5% tax that is payable by entities and individuals with cryptocurrency holdings.”
The Ukrainian government sees itself involved in deeper sectors within the crypto currency industry in less than two years, and plans to have existing legal frameworks regarding major topics such as smart contracts and cryptocurrency mining by 2020.
Last month, a member of the anti-corruption Movement of New Forces, Yuriy Derevyanko solicited for the complete removal of taxes levied on cryptocurrency firms by the end of 2020.
Derevyanko, who also happens to be a legislator of Ukraine, noted that cryptocurrency has the potential of becoming one of Ukraine’s major markets thereby being a significant determinant of the country’s economy. He stated:
“I believe we need to impose a moratorium on taxation of [the crypto] area for the next 10 years. We have to regulate and legalize this segment, which will become an engine for a new economy.”