Ukraine Plans To Legalize Cryptocurrencies By 2021

News, Regulation | October 29, 2018 By:

Ukraine’s Economic Development and Trade Ministry is developing a public policy for the classification and legalization cryptocurrencies.

The ministry said that the purpose of the policy is to “create understandable conditions for conducting activities in the field of virtual assets and virtual currencies.” This will reportedly be done in two separate stages and will be completed in 2021.

At the first stage in 2018-2019, the government will define the legal status of cryptocurrencies and analyze “problems and trends” in the market in order to develop proposals for the improvement of regulatory policy. The second stage, 2020-2021, would involve recognizing crypto wallet providers and custodial platforms as “subjects of primary financial monitoring.” Crypto-related activities will then be regulated.

The ministry said that the new regulatory concept will allow the government to “protect the rights of consumers” in the crypto space.

“Market participants will have the opportunity to use banking services, to officially attract foreign investments, to conduct ICO / ITO as Ukrainian companies, to conclude smart contracts and to carry out barter transactions for the exchange of goods (services) into virtual currencies,” the ministry said.

The ministry added that implementation of the regulatory concept will enable the state to increase revenues to the budget, as well as the inflow of foreign currency to Ukraine, create new high-paying jobs, receive objective statistical information, and stimulate the development of the digital economy.

The new regulatory concept is Ukraine’s second attempt this year to coordinate the efforts of local institutions aimed at adopting a comprehensive legal framework for the crypto industry. In July this year, the country’s Financial Stability Council approved another regulatory concept for the crypto space, and in January, the National Security Council formed a working group tasked to finalize the different proposals.