Ukraine to Adopt European Crypto Rules and Clarifies Taxation – Regulation Bitcoin News

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

Ukraine Set to Incorporate EU Crypto Regulations into National Legislation

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 indicated that the Ukrainian authorities will incorporate the new EU standards into their country’s legal framework.

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

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

Boyko also said draft arrangements to achieve this are almost ready and officials will soon begin talks with key stakeholders. The NSSMC, together with its partners, is actively working on the launch of the virtual asset market in Ukraine, and the MiCA regulation has been taken as a basis, he underlined.

Together with our colleagues at the NSSMC, we are already working to implement some of the provisions of the MiCA so that crypto assets are also legal in Ukraine, confirmed Yaroslav Zheleznyak, Member of the Ukrainian Parliament, who spoke to Telegram to express his excitement about the regulatory development.

Ukrainian lawmakers, a candidate for EU membership, first passed 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 re-enacted in February 2022, before he signed it into law. It should come into force after the deputies of the Verkhovna Rada approve the relevant amendments to the Tax Code.

While national crypto tax rules have yet to be introduced, the Lviv office of the Ukrainian State Tax Service has taken matters into their own hands and clarified the taxation of crypto-related income for individuals. Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income, the regional tax authority explained in a notice issued this month.

Tags in this story Crypto, Crypto Assets, Crypto Markets, Cryptocurrencies, Cryptocurrency, EU, European 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 tech-savvy Eastern European journalist who loves Hitchens’ quote: Being a writer is who 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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