The Ukrainian parliament recently received dual applications for proposed bills which aim at building a legalized cryptocurrency framework. One of them have also proposed conferring upon them the title of being recognized as a financial asset. The drafted bill has defined cryptocurrency derivatives apart from reducing electricity tariffs associated with mining activities and simplifying the taxation pyramid.
The first bill pertaining to cryptocurrency paradigm was submitted on 6th October to the Ukrainian parliament. The second bill number 7183-1, termed as “On the stimulation of the market of cryptocurrencies and their derivatives in Ukraine,” was submitted to the concerned authorities last week.
Read:Ukraine Introduces New Legislation for Cryptocurrency Law
Serhiy Rybalka, the head of the Parliamentary Committee on Financial Policy and Banking has proposed the recognition of cryptocurrencies as “financial assets” in the new bill. According to a report published by The Financial Club, Rybalka was quoted as saying, “ “It makes no sense to reinvent the wheel and invent new rules for it. The most effective model is the adaptation of cryptocurrencies to the already existing legislation. That is why we propose to recognize cryptocurrency as a financial asset.”
The Ain publication elaborated that, “According to this document, state bodies are responsible for monitoring cryptocurrency exchanges. Cryptocurrency exchanges will be required to obtain a license for their activities. They have the right to open accounts in cryptocurrency both for citizens of Ukraine and for non-residents.”
The second draft bill proposes to bring along “reduced tariffs for electricity and the simplest taxation” in order to “stimulate the ‘extraction’ and turnover of cryptocurrencies as per The Financial Club’s publication. Serhiy Rybalka also “proposes not to tax cryptocurrency investments” stating that 2% fee shall be levied whenever cryptocurrencies are exchanged for hryvnia. The bill has also conferred upon National Financial Services Commission the post of being the primary regulator of the digital tokens. The first bill conferred upon National Bank of Ukraine (NBU) the role of being the ultimate crypto market regulator. Orlovsky Maxim, the Head of Bitcoin Foundation Ukraine noted that none of the bills contain any reference to initial coin offerings. The first draft also does not bring into light anything specific about KYC and AML procedures pertaining to cryptocurrency operations whereas the second draft proposes for the central financial regulator to determine the licensing requirements.
Although the Ukrainian government has not yet come up with a regulatory framework for crypto implementation, no part of the legislation restricts the same. Oleksandr Danylyuk, the Ukrainian finance minister recently took to social media on Monday to state that, “ There are many open issues and in Ukraine the status of cryptography is not defined by law, but this does not mean that cryptocurrency is prohibited. Ukraine should monitor world trends and not miss a chance to use new technologies and innovations in the financial sector.”
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