Ukraine Could Legalize Bitcoin Payments After Crypto Bill

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After the crypto bill is passed, Ukrainians will be able to legally own, trade and spend cryptocurrencies like Bitcoin (BTC), a government official has revealed.

In addition to allowing payments in cryptocurrency, Ukraine’s Ministry of Digital Transformation is proposing lower taxes on cryptos as the new legislation seeks to pave the way for the industry to enter the country.

Create a market for crypto services

The new cryptocurrency bill will make cryptocurrencies a completely legal and common phenomenon for government and society, Ukrainian Deputy Minister of Digital Transformation Oleksandr Bornyakov told financial publication Minfin.

According to Bornyakov, who sees crypto as the future of his country and the world, the Ukrainian government does not want to hamper the development of this new industry through excessive regulation.

Bornyakov expects a whole new market to develop for crypto services, with new legislation allowing Ukrainians to legally trade and declare their crypto holdings.

According to the project, cryptocurrencies will not be recognized as a means of payment, but the legislation will allow crypto payments through intermediary services that provide instant crypto-fiat conversions, the official said.

The bill, which will expand the possibilities of using cryptography, is being prepared for adoption at second reading, after being passed by the Ukrainian parliament in December.

For crypto to enter the country

To protect Ukrainian crypto users, service providers will need to receive a permit to work in Ukraine, according to the bill designed in a way that allows foreign companies to enter the country smoothly.

To this end, the legislation provides for the establishment of a new regulatory body, the National Service for the Regulation of Virtual Assets.

This is a simpler procedure than licensing, Bornyakov told Minfin, adding that the conditions for obtaining a permit would not be difficult.

The main thing is to prove that there is the necessary capital and that there are no people on the sanctions lists among the founders, he said, explaining that companies will not be required to ‘register a legal person in Ukraine.

We understand that the activity with virtual assets is global, so if we set the conditions for registration in Ukraine, cryptocurrencies will simply not enter our country, he concluded, adding that the list conditions for obtaining a permit, including for non-residents, are clearly defined in the text of the bill.

According to Bornyakov, the bill does not address the issue of crypto mining in any way, as the ministry considers it to be a completely legal activity, which does not require further regulation.

Work is still underway on the text of the Tax Code Amendment Bill, Bornyakov said, revealing a new proposal to lower the rate for individuals to 5% from the current 19.5%.

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