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Ukraine to Adopt Europe’s Crypto Rules, Clarifies Taxation – Regulation Bitcoin News

2 years ago CryptoExpert
Ukraine to Adopt Europe’s Crypto Rules, Clarifies Taxation

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Ukraine to Adopt Europe’s Crypto Rules, Clarifies Taxation

Officials have revealed that Ukraine intends to implement the crypto market rules approved by the European Parliament. While the government is already moving in that direction, the tax service has issued a clarification regarding the taxation of income resulting from cryptocurrency transactions.

Ukraine Set to Incorporate EU Crypto Regulations Into National Law

A regional leader in crypto adoption, Ukraine now plans to follow in the footsteps of the global leader in crypto regulation, the European Union. Statements in Kyiv have indicated that Ukrainian authorities are going to incorporate the new EU norms into their country’s legal framework.

On Thursday, European lawmakers gave their final approval to the Markets in Crypto Assets (MiCA) package. It is the world’s first comprehensive attempt to regulate the crypto space. It introduces licensing for crypto service providers and mechanisms for investor protection.

“This is a truly historic event, I am sure Ukraine will be one of the first countries to implement this regulation into national legislation,” commented Yuriy Boyko, member of the National Securities and Stock Market Commission of Ukraine (NSSMC).

Boyko also said that draft provisions to achieve that are almost ready and officials will soon start talks with the main stakeholders. “The NSSMC, together with its partners, is actively working on the launch of the virtual assets market in Ukraine, and the MiCA regulation was taken as the basis,” he emphasized.

“Together with our colleagues from the NSSMC, we are already working on the implementation of some of the MiCA provisions so that crypto assets are legal in Ukraine as well,” confirmed Yaroslav Zheleznyak, member of Ukraine’s parliament, who took to Telegram to express his excitement about the regulatory development.

Lawmakers in Ukraine, a candidate for EU membership, first adopted a draft law “On Virtual Assets” in September 2021, but the bill was returned by President Volodymyr Zelenskyy, revised in accordance with his recommendations and passed again in February 2022, before he signed it into law. It should enter into force after deputies in the Verkhovna Rada approve relevant amendments to the Tax Code.

While the nation’s crypto tax rules are yet to be introduced, the Lviv Office of the State Tax Service of Ukraine has taken the matter in its own hands and clarified the taxation of crypto-related income for private individuals. “Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income,” the regional tax administration explained in a notice published this month.

Tags in this story

Crypto, crypto assets, Crypto markets, Cryptocurrencies, Cryptocurrency, EU, EU Parliament, european, European Parliament, European Union, Law, Legislation, MiCA, package, Regulation, Regulations, rules, Ukraine, ukrainian, virtual assets

Do you expect other non-EU countries in the region to introduce the MiCA rules in their jurisdictions? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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