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Cryptocurrency has been legalized in Ukraine. The crypto market will become legal and come out of the shadows with the adoption of the law “On virtual assets”. Let’s think, what does it mean to everyone who buys and sells cryptocurrencies?
Adoption of the Law on Cryptocurrency in Ukraine
There was no special law that would regulate Ukrainian cryptocurrency market until 2021. Several individual laws addressed digital assets only partially. The Law on Cryptocurrency in Ukraine in 2022 is called “On Virtual Assets”. Experts consider that its adoption is a good sign, because now the crypt is legal, wand it means that soon even more people will become interested in it, businesses of different levels will begin to accept bitcoins and other coins as payment, the emergence of new Ukrainian cryptocurrency exchanges and other interesting projects is not excluded.
What does the law on cryptocurrency in Ukraine establish?
The law on cryptocurrency in Ukraine allows our and foreign crypto exchanges to conduct legal activities according to the Ministry of Finance. Now banks have the right to register accounts for cryptocurrency companies, and ordinary citizens have the opportunity to protect their cryptocurrency savings in courts.
After Ukraine legalized the cryptocurrency virtual assets are officially divided into several categories:
- Unsecured. They include assets that exist on their own, such as Bitcoin and other popular coins.
- Secured. These are assets secured by real money, property or property rights, such as NFT tokens.
- Financial. Assets secured by Ukrainian currency or securities, such as stablecoins.
The law on cryptocurrency in Ukraine will affect taxation in this area. If you buy a certain amount of crypto, you will not have to pay taxes. But if you earn on it, you must pay income tax. Income tax is 5% + 1.5% (military tax) for individuals within five years.
Preferential conditions are in effect for five years, but when they end, the tax will already be 18% + 1.5%. It is worth noting that new rules will come into full effect after amendments are made to the Tax Code.
Who will regulate the sphere?
According to the new law on cryptocurrency in Ukraine in 2022, the market needs to be controlled, so the National Commission on Securities and Stock Markets will regulate it. Its main tasks:
- formation and implementation of policy in the cryptocurrency sphere;
- determining the procedure for controlling the circulation of digital assets;
- issuance of state licenses to companies providing services in the cryptocurrency market;
- control and financial monitoring.
What changes will traders feel from the adopted law about cryptocurrency in Ukraine?
The analytical company Chainalysis claims that Ukraine is on the fourth place in the world ranking of the use of cryptocurrency assets, and at the end of 2021 we entered top ten countries with the highest earnings on bitcoins. It suggests that Ukrainians are actively interested in crypto, and the law on cryptocurrency in Ukraine was adopted in a timely manner.
Legalization of virtual assets will make the market transparent and give impetus to the development of infrastructure. Market openness will attract new investors, blockchain-related technologies will develop faster and more efficiently, and market participants will be able to feel more confident. For example, traders will be able to protect their rights after the adoption of the law on cryptocurrency in Ukraine. If the client of the exchange considers that his rights have been violated, he will be able to file a lawsuit. It is true that it applies only to those crypto-exchanges that are registered in Ukraine.
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Author: admin_cryptocrew
