Ukraine Moves Towards Legalizing Cryptocurrencies in the Next 3 Years
While some governments are banning cryptocurrencies or not sure what they intend to do with them, the government of Ukraine released a press release outlining how it plans to draw a legal framework within the next three years. The purpose of the upcoming regulation is to provide clear conditions to govern activities in the digital asset space. The government has also realized that the local crypto industry is growing and wants to capitalize on it.
The Development of a Legal Crypto Draft
The Ministry of Economic Development and Trade initiatives is planning to draft new regulation for virtual currencies in two stages.
The first stage is slotted for 2018 – 2019. In this stage, the government will provide a legal definition on the status of cryptocurrencies; the recognition of cryptocurrency exchanges that facilitate the trading of virtual currencies to fiat currencies (or vice versa); and analysis and monitoring of trends and problems in the crypto market. This will be used to develop proposals for the development of the regulation.
The second stage, which will run from 2020 – 2021 will see the recognition of cryptocurrency exchanges and the “development of special legislative acts on the regulation” of crypto assets and smart contracts.
The press release noted that Ukraine was among the top 10 countries in the world with the highest number of cryptocurrency users in 2017. The Ukrainian cryptocurrency industry is estimated to be worth around $100 million.
Despite the growing trend in digital assets, the country does not have a legal framework governing the crypto market such as taxation, legal status, and the use of smart contracts. The market is developing and thriving in grey areas, exposing investors to fraud and scams. The new draft will enable participants in the sector to make use of banking services.
The press release also noted that in the absence of a proper regulatory environment:
“The state, in turn, lacks taxes and foreign exchange earnings. It has no opportunity to carry out financial monitoring in this area due to a lack of statistical information. As a result, foreign investments and opportunities for creating new high-paying jobs are lost.”
Ukraine’s Cryptocurrency History
In December 2017, state agents invaded the offices of a copy trading cryptocurrency site and confiscated computers and digital currencies worth around $250,000. Anthony Kaplan, the chief of the news site moved to Israel after the Ukrainian government failed to give him all of his confiscated possessions.
In March, the authorities announced that they had closed down about 400 cryptocurrency mining operations.
In May, Alexei Mushak, a Member of Parliament, posted on his Facebook page that the country was preparing a draft to legalize cryptocurrencies.
In September, the National Bank of Ukraine unveiled a plan to launch a government-backed stablecoin pegged to the fiat currency on a 1:1 ratio.
Ukraine’s new plans, if properly carried out, will turn the country into a fintech hub and attract various blockchain firms.
Ukraine Moves Towards Legalizing Cryptocurrencies in the Next 3 Years was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.