Ukraine is planning to introduce new crypto regulations that are inspired by EU Markets in Crypto-Assets (MiCA) regulations. The country’s National Commission on Securities and the Stock Market, the Ministry of Digital Finance, the National Bank of Ukraine, and MPs are currently working together to develop a plan. The Verkhovna Rada’s Financial Committee is also working on new proposals in conjunction with law enforcement agencies and crypto market players.
New Regulations to be More Detailed
The new legislation is expected to be adopted before the end of the year and will directly affect the Ukrainian crypto market. The committee’s First Deputy Chairman, Yaroslav Zheleznyak, said that the draft bill could be submitted to parliament in the summer session and adopted before the end of the year. He also noted that the new bill would be more thorough and detailed than a previous crypto law passed in 2021. The legal terms for crypto assets will be comprehensively spelled out, and the bill will also focus on taxation-related matters.
The new regulations will be adapted to European standards and will likely tax gains from crypto assets after traders convert coins to fiat currencies. This means that traders will be obliged to pay capital gains tax on crypto-to-fiat sales only, and crypto-to-crypto trades will not be subject to any form of taxation. The central bank will have the final say on the bill, and international financial firm EY and USAID Financial Sector Reform are reportedly advising on the new regulations.
In conclusion, Ukraine is set to introduce new crypto regulations, and the country is working with various parties to develop a plan based on the EU Markets in Crypto-Assets regulations. The new legislation will be more detailed and comprehensive than the previous crypto law, and it will focus on taxation-related matters. The central bank will have the final say on the bill, and it is expected to be adopted before the end of the year.