New Ukrainian Crypto Regulations to Debut by Year’s End – Here’s All You Need to Know

Regulation Ukraine

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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October 23, 2023 07:03 EDT

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Ukraine is set to roll out new, EU-inspired crypto regulations, with Kyiv hoping to impose the rules before the year is out.

Forbes Ukraine reported that the National Commission on Securities and the Stock Market, the Ministry of Digital Finance, the National Bank of Ukraine (the central bank), and MPs are currently working on a plan.

The news follows developments earlier this month when politicians revealed they would adopt EU Markets in Crypto-Assets (MiCA)-inspired regulations.

MiCA was adopted into EU law in the second half of 2022.

The media outlet stated that Verkhovna Rada’s Financial Committee is working on new proposals.

The committee is working in conjunction with law enforcement agencies.

It added that several “crypto market players” were also advising on the new regulations.

The international financial firm EY (Ernst & Young) and USAID Financial Sector Reform are also reportedly “advising.”

These parties have formed a “working group.”

But the central bank will have the final say on the bill.
 

The new legislation will likely “be adopted before the end of the year and will directly affect the Ukrainian crypto market,” Minfin reported.

The committee’s First Deputy Chairman Yaroslav Zheleznyak claimed the draft bill could be “submitted to parliament in the summer session” and “adopted before the end of the year.”

Zheleznyak confirmed that MiCA would provide the benchmark for the new regulations.

He noted that the “document” would “be adapted to European standards.”

Zheleznyak added that the new bill would be “more thorough and detailed” than a previous crypto law passed in 2021.

Politicians said legal terms for cryptoassets would be comprehensively spelled out.

They added that the bill would also focus on taxation-related matters.

The latest UN report finds that crypto ownership is highest in emerging economies, whereas Ukraine, Russia, and Venezuela top the ranks. pic.twitter.com/xADfiGkZKD

— CB (@TheCryptoBong) September 4, 2022

Zheleznyak added that the bill will “most likely tax [gains] from cryptoassets after [traders] convert [coins] to fiat currencies.”

This would likely mean that traders would be obliged to pay capital gains tax on crypto-to-fiat sales only.

Crypto-to-crypto trades will likely not be subject to any form of taxation.