cryptoshitcompra.com/wp-content/uploads/2021/08/Ukraine- could-allow-indirect-cryptocurrency-regulate-the-exchanges.jpg »alt =» Ukraine could allow indirect cryptocurrency and will regulate exchanges 101 ″ class = »Content-img» /> Source: iStock / Harvepino

Ukraine may be set up to allow its citizens to “protect their wealth” in crypto assets, a minister said, but it will move to block cryptocurrency-based direct payments and regulate the exchange according to “international” guidelines.

In an interview with Minfin, Oleksandr Bornyakov, Deputy Minister of the Ministry of Digital Transformation , spoke about the government’s plans for the bill “On Virtual Assets”, the first reading of which was approved by the national parliament in December 2020. draft of law is being updated and amended before a second reading.

Bornyakov was quoted as stating that preparation for the second reading was underway, but suggested that while the law would likely stop before allowing crypto payments directly, it would still seek to legalize exchanges and protect investors, without stifling trading platforms. cryptocurrency trading in the bureaucracy.

he has stated,

“Since there will be legislative regulation in this area, [crypto investors] will at least be able to protect their wealth in virtual resources. y will also be able to legally trade cryptocurrencies and declare [their transactions]. This process will be completely normal.

Bornyakov added that he “expects” the expansion of a “market for brokerage services”, allowing people to pay for goods and services using cryptocurrencies. But while the bill “clearly states that crypto is not a means of payment,” it will not move to block indirect crypto initiatives.

He explained:

“Currently, even Ukrainian law does not allow citizens and businesses to pay in US dollars, but you can pay for purchases safely with a US dollar card. When you pay [with a card like this], a real-time currency conversion is performed «.

deputy minister said that the terms of the bill “assume that companies will be able to provide services for such transitions,” so that “it will be quite legally possible to pay with cryptocurrencies”, as long as this is done “through an intermediary.” . . «

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Bornyakov added that he wanted to “clearly establish that virtual asset transactions are not subject to VAT,” another possible benefit for cryptocurrency investors. He said talks were ongoing about taxes on the income of transactions involving cryptocurrencies, with a fluctuating rate of “only 5%”. He noted that this figure was much lower than the current 19.5% tax on asset sales.

However, he said such proposals were “still under discussion” with the Finance Ministry and the parliamentary tax commission.

re was also news for cryptocurrency exchanges, which said they would “need to obtain permission to operate in Ukraine.” But Bornyakov said that while no operational “licenses” would be needed, “permits” would be a requirement. procedure for obtaining it would be “easier,” he said.

deputy minister explained that “international requirements” would likely mean the introduction of anti-money laundering protocols for trading platforms.

He said:

“We must comply with international recommendations in this regard. But I would not say that they are excessive or unjustified. You [the sector] yourself do not meet international standards, so there is a high probability that the cryptocurrency will be used for money laundering.

Bornyakov also noted that “when granting a permit,” regulators probably “verify documents on company incorporation and authorized capital,” while foreign platforms that provide services to Ukrainians will also have to comply, although such a process will not. it would have taken place overnight.

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He concluded:

“During the first phase of market regulation, we will not be able to verify whether each cryptocurrency exchange provides services to Ukrainians. refore, the companies themselves must take responsibility for obtaining the permits. For our part, we will do our best to advise [platforms] on legislative changes and the need to obtain authorization. Over time, it is possible that joint efforts by the global regulatory body aimed at the exchange [crypto-related] information will be established ‘.

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To know more: – Hurry and liquidate cryptocurrencies, urges the central bank of Ukraine – “Legalize cryptocurrencies”, urges the head of Ukrainian cybercrime

– Ukraine’s finance minister says cryptocurrencies are ‘promising’ – Ukrainian parliamentarians want to imprison people who do not disclose cryptocurrency holdings

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