The Government of Ukraine is reportedly making moves toward approving a policy aimed at legalizing digital currencies. The Ministry of Economic Development and Trade of Ukraine is said to be in charge of the policy creation.
Ukraine’s Policy on Crypto is still Legally Vague
Through the ministry, the government is looking to set in motion plans targeted at actualizing the clearest and most transparent ecosystem for the promotion of digital currencies and tokens in the country
In Ukraine, the status of cryptocurrencies is still vague legally. As a result of this, the government has very little power when it comes to enacting tax law for the crypto industry businesses and participants. The country’s stance and vision when it comes to the development and drafting of smart contracts are also not legally stated.
Ukraine has been identified to have a large population of cryptocurrency users within its border. The country was ranked in the top ten list of countries whose citizens used cryptocurrencies most actively in 2017. It was also reported that the mining of crypto in Ukraine brings an annual income of $100 million in the country. The Better Regulation Delivery Office (BRDO) reports also showed that Ukrainian companies have also generated about $100 million from initial coin offerings (ICO) and initial token offerings (ITO) in 2017–2018.
Ukrainian Government Not Protecting User’s Rights
Based on these statistics alone, it is clear that the Ukrainian crypto industry is currently undermined by the government. Apart from the fact that the government could be collecting tax from participants, especially those profiting from the market, the government is also not providing adequate capital protection for its residents.
It is as a result of this the Ukrainian authorises, has made its intention of legalizing the crypto industry known. The country plan to do this in two phases. The first one is scheduled for 2018–2019, and the second one will be carried out in 2020–2021.
The first stage will entail the definition of the status of digital asset as well as to commence an intensive oversight of the industry and also improve the regulatory system. The second stage will have, the authorities defining eligible platforms capable of providing standard crypto wallet services to its user and also develop legislation to regulate crypto assets and ICOs.