Ukraine is one of many countries in which cryptocurrencies are in murky regulatory waters. Now it looks as if this might soon change, as Ukrainian news outlets are reporting that state officials are looking to legalize cryptocurrencies by 2021.
The news that Ukraine is looking to more accurately define and regulate cryptocurrencies was also corroborated by the nation’s state information and news outlet ”Ukrinform” on October 26.
According to the official state announcement, Ukraine will ”initiate the adoption of the concept of state policy in the field of virtual assets” with the ultimate aim to legalize cryptocurrencies in the country.
This will reportedly be done in two separate stages. The first one will consist of granting Ukrainian cryptocurrency-related ventures legal states, as well as decentralized virtual assets.
Following this, Ukraine’s Ministry of Economic Development and Trade will then take over. Specifically, the ministry will prepare a set of comprehensive regulations that determine and define exactly how cryptocurrencies should be regulated.
Moreover, the ministry will also define basic cryptocurrency-related terms. According to the official announcement, ”virtual currency”, ”virtual assets”, ”ICO/ITO”, ”mining”, ”smart contract” and ”token” will all receive a legislative definition.
Furthermore, the official press release stresses that the underlying reason for this push towards regulating cryptocurrencies is to ”create understandable conditions for conducting activities in the field of virtual assets and virtual currencies”.
The ministry also proposed that these two steps should be concluded within three years, with cryptocurrency being fully legalized by 2021.
According to a report from ”U.today”, legalizing cryptocurrencies is reportedly thought to aid in boosting cryptocurrency-related ventures in the Eastern European nation, as well as increase investor protection. Currently, the mining business in Ukraine is reportedly already worth over $100 million.
There has, however, been previous signs that Ukraine has been pondering legalizing cryptocurrencies.
Earlier this year, a member of the Ukrainian parliament – Alexei Mushak – released what appeared to be a draft on cryptocurrency regulations through Facebook. This draft was aimed at creating a ”free and transparent” digital asset market in the country.
Moreover, Ukraine has seen much attention aimed at the matter of cryptocurrency taxation in the past months.
Several different cryptocurrency taxes have been proposed so far, and the announcement that Ukraine is now looking at legalizing the asset class completely by 2021 shows that the government is pushing to create more clear definitions for the industry.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.