Ukraine wants to legalize crypto (again)

[Artemis3]

This reminds me with Bitcoin legality in China and India which changed few times already (fully legal, legal but restricted, unknown, illegal, etc.)

Taxing can probably be done to physical things within the country, such as to asic mining equipment import or mining sites.

Importing ASIC mining equipment (or any electronic equipment) already taxed by any country, i think they meant tax of miner's profit when they decide to sell their mined cryptocurrency.

What if you never sell it, how do you tax that?

A miner could actually have another business and use that entirely to pay for the mining operation, and spend none of the bitcoin (ie. holder).

Alternatively, most commonly, they would only exchange the minimal needed to keep operations running, pay bills and wages. Do you tax that?

And that begins with the miner disclosing to the gov their wallet address. And, is the tax paid in crypto? A % of the bitcoin in bitcoin? What if they mine some obscure altcoin nobody cares about?

[eaLiTy]

In the past there was multiple laws submitted by MP's that aimed at legalization of cryptocurrency, but it seems like this issues wasn't important enough to even vote for it. But after the recent elections the parliament and government fully changed, and now Minister of Digital Transformation says he wants to legalize crypto, so that law enforcement would stop extorting miners and crypto traders/miners would start paying taxes. He also says that he wants to put government records on blockchain.

The new government has already started doing some reforms as soon as they got the power, so maybe there's a chance that they will indeed legalize crypto. But I don't think that this chance is too big - maybe they will be busy with other things again, and MP's simply won't have time to review and vote such a niche law.

It is a really promising take from a government who wants to put every government records on the blockchain so that every entry is registered and cannot be altered at a later time. It wont be a niche law but the BTCitcoin market is growing at a rapid pace and it cannot be ignored by any government and they will be forced to come up with regulations to have a fair market. Even if there is no regulation people are bound to pay their taxes for the income they earned and majority are doing so to avoid issues in the future.

[zeingrind777]

I am living in Ukraine and I can tell you that the cryptocurrencies are very well accepted here , you can find stores where you can buy and sell using Bitcoins also at the same time you can in person make the deal regarding your cryptocurrencies and such , so the people have already accepted it more or so , the government have changed a lot , the new president is open about everything thus I think it will be easy for the cryptocurrencies to make a place in Ukraine .

an open-minded president is the welfare of the people. Even though Volodymyr is a former comedian, his open-minded thoughts about technology are very good. I'm very confident, after the cryptocurrency is legalized there, the people of Ukraine will become more prosperous

[migws]

This isn't on any crypto news sites yet, so I'll post the link to google translate of the original source - https://translate.google.com/translate?hl=en&sl=ru&tl=en&u=https%3A%2F%2Ftech.liga.net%2Ftechnology%2Fnovosti%2Fu-fedorova-pliniruyut-legalizovat-kriptovalyutu

In the past there was multiple laws submitted by MP's that aimed at legalization of cryptocurrency, but it seems like this issues wasn't important enough to even vote for it. But after the recent elections the parliament and government fully changed, and now Minister of Digital Transformation says he wants to legalize crypto, so that law enforcement would stop extorting miners and crypto traders/miners would start paying taxes. He also says that he wants to put government records on blockchain.

The new government has already started doing some reforms as soon as they got the power, so maybe there's a chance that they will indeed legalize crypto. But I don't think that this chance is too big - maybe they will be busy with other things again, and MP's simply won't have time to review and vote such a niche law.

Do you mean miners will pay electricity tax or a percentage of Bitcoin mining? And yet, will the government legalize exchanges, that is, control exchange customers by requiring data or you don’t know?

[rodel caling]

After banned become legit or legal, this is not a surprise, there's have many scenrario and story like this before example on that is Australia and now they enjoy the benefits of crto currency as legal thender as new form of money. Ukraine government are realize the importance of crypto and the importance of of new technologies how it can help for the economy.

[hatshepsut93]

Do you mean miners will pay electricity tax or a percentage of Bitcoin mining? And yet, will the government legalize exchanges, that is, control exchange customers by requiring data or you don’t know?

I don't know any details, there's no new draft law yet, but what that guy said about mining is that he wants miners to start paying taxes on their revenue, and police/secret service should stop harassing them. As for exchanges, they are already legal, but again, there was no framework for regulation revealed, but my guess is that there will be tighter rules for exchanges, including KYC, because it's the norm anywhere where crypto gets regulated.

[darkangel11]

Good for them, although after their former president has fled I'm not sure how trustworthy the current government is. Russians are most likely pulling the strings there. There were rumors about Russia planning to launch their own crypto. If they were really doing it Ukraine could be a great place to do some field tests. The Ukrainian government could be easily persuaded to test how the economy will take a more lenient approach to cryptocurrencies. If all goes well Russia will go further with crypto adoption and if not it will be easier to destabilize Ukraine for a future takeover. That's just my little conspiracy theory.

[LUCKMCFLY]

In the near future, those countries that have not accepted Bitcoin and are banned from using it, will end up accepting it, because they cannot go against progress, it is a technology, whether they want it or not, they will end up adopting it so as not to be left behind, and several countries like China and the Philippines are showing acceptance, not just Ukraine.

[hatshepsut93]

Good points and i agree with your points, but how else would you tax miners fairly (aside from your and my idea)?
I don't know about Ukraine law, but usally there's tax for industry equipment, land, electricity, etc. Extra tax for mining business feels weird IMO.

It's not known yet if there will be some special tax for mining or not, but what that minister actually meant is that right now miners are not paying taxes at all, and they are afraid to do report their activity to authorities, because they might get extorted by law enforcement. Mining is not illegal in Ukraine, but police and security service still seize mining equipment under some bullshit charges like "terrorism financing". Those charges then get dropped, but miners lose a lot of profit while waiting for the court's decisions - this is why it's easier for them to just pay a bribe to their extortionists.

[Sithara007]

This time their efforts may succeed. Ukraine is no longer being led by the establishment politicians. The people have kicked out career politicians, both from the pro-Russia and the pro-NATO camps. And once these establishment politicians are gone, the government's resistance towards Bitcoin decreases a lot. Volodymyr Zelensky and his party (Servant of the People) are not linked to the bankers and therefore they don't have any reason to hate cryptocurrency. My only regret is that this decision didn't came earlier. BTC-e was based in Kiev, before being forced to shift the operations to Sofia as a result of the hostile government action. Ordinary Ukrainians would have benefited a lot had they continued their operations in Ukraine.

[Sadlife]

This isn't on any crypto news sites yet, so I'll post the link to google translate of the original source - https://translate.google.com/translate?hl=en&sl=ru&tl=en&u=https%3A%2F%2Ftech.liga.net%2Ftechnology%2Fnovosti%2Fu-fedorova-pliniruyut-legalizovat-kriptovalyutu

In the past there was multiple laws submitted by MP's that aimed at legalization of cryptocurrency, but it seems like this issues wasn't important enough to even vote for it. But after the recent elections the parliament and government fully changed, and now Minister of Digital Transformation says he wants to legalize crypto, so that law enforcement would stop extorting miners and crypto traders/miners would start paying taxes. He also says that he wants to put government records on blockchain.

The new government has already started doing some reforms as soon as they got the power, so maybe there's a chance that they will indeed legalize crypto. But I don't think that this chance is too big - maybe they will be busy with other things again, and MP's simply won't have time to review and vote such a niche law.

Every legalization addd confidence in cryptocurrency market ,if Ukraine will legalized crypto and brings good to their economy then surely others closer countries my do as well,we need large part of Europe to enter the legalization of cryptocurrency as one of the largest continent and most economical also
Hoping to see this topic updating soon that the legalization is already done

[Irvinn]

As far as I know, cryptocurrencies in this country are not launched, but there is no official legalization.  Thus, all activity and financial turnover of cryptocurrency is in the shade.  Although in spite of the fact that all state structures understand what financial scales are involved, in this country even refused to declare cryptocurrency for officials, since cryptocurrency is not an asset.

[Hippocrypto]

As far as I know, cryptocurrencies in this country are not launched, but there is no official legalization.  Thus, all activity and financial turnover of cryptocurrency is in the shade.  Although in spite of the fact that all state structures understand what financial scales are involved, in this country even refused to declare cryptocurrency for officials, since cryptocurrency is not an asset.

There's a possibility that cryptocurrency will be used as mode of investment of this country. But stating that it's not an asset is totally misleading, that's why everybody needed to be more educated with digital currency. More people holds bitcoin for so long and that's the strong foundation which I considered most, and legalization follows.

[Tonteus]

I hope they succeed. The more countries adopt crypto, the better

[ovcijisir]

If Ukraine wants to legalize cryptocurrencies does that mean that it is illegal to trade/possess it right now?

If you mean that they want to regulate it that is different story...

[Anonylz]

If Ukraine wants to legalize cryptocurrencies does that mean that it is illegal to trade/possess it right now?

If you mean that they want to regulate it that is different story...

No, I think what means is that the government of that country will legally recognize the use of crypto in their country I.e put it into some sort of law that will enable the citizens of such country to openly engaged in crypto, which means people can openly accept and do business using crypto,

While not being legalize may not entirely mean illegal just that not have government approval, if you engage in it, then that will be at your own risk, moreover, not everyone will openly accept it or trade with, just like in most countries where the government did not approve or disapprove  the use of crypto but still people engage in crypto trading.

[Ozero]

Good for them, although after their former president has fled I'm not sure how trustworthy the current government is. Russians are most likely pulling the strings there. There were rumors about Russia planning to launch their own crypto. If they were really doing it Ukraine could be a great place to do some field tests. The Ukrainian government could be easily persuaded to test how the economy will take a more lenient approach to cryptocurrencies. If all goes well Russia will go further with crypto adoption and if not it will be easier to destabilize Ukraine for a future takeover. That's just my little conspiracy theory.

Russia will not succeed in swallowing Ukraine. If Russia, frightened, did not begin to deploy its additional troops to the Donbass at the beginning of 2014, when in Ukraine there were only six thousand combat-capable military personnel and heavily armed Russians in tanks and other modern equipment, only practically voluntary battalions armed with machine guns blocked the way, many of who were then killed, even now, when Ukraine is forming the best army in Europe and which is gaining combat experience in battles with Russian invaders, they cannot do this already.
As for cryptocurrency, I do not see any relationship between the plans of the Ukrainian government regarding cryptocurrency and plans in cryptocurrency from Russia. The Russian government is unlikely to allow its citizens to freely use cryptocurrency, as it will in any case do in Ukraine. In these countries, a completely different degree of freedom and a completely different desire for it. The Russians are not yet able to unite and throw off their internal tyrants, as the people of Ukraine have done more than once, including with their previous twice-convicted President Yanukovych.

[Wysi]

Well this might happen only when crypto start dominating the market, government will recognise coins only if the users are higher. BTC dominance is growing fastly and it cannot be ignored by the government, let the government keep some rules to avoid misleading in the near future if they want but just make it legal.

[massguru]

In countries with a worsening economy, these situations should be considered quite normal. If we give an example to these countries, Venezuela, Argentina, Brazil and Turkey can be counted. They either become very innovative and visionary or really have a very bad economy.

[whyrqa]

I believe that Ukraine is a phenomenal country that attracts its attention not only regarding what is happening politically, but also economically.  Of course, very bad people have ruled this country lately, but with the current government everything can change, since only in the last few months the level of GDP has increased several times and the national currency has strengthened.  The fact is that IT forums have been held repeatedly, which intend to carry out reforms regarding the introduction of digital technologies in all spheres of the country's life.  First of all, I want to mention such facts, where the new government is trying to introduce the concept of Country in a smartphone, where the blockchain will be used.  In addition, the election process in the country in the future will also occur using blockchain.  There are many start-ups that plan to implement their projects using cryptocurrency, and the new government has expressed its willingness to support developers in the literal and figurative sense, since bills on the full implementation of cryptocurrency will be prepared in the near future.  I think that in this matter it is not necessary to insult the inhabitants of this country, since they will prove by their work what they are capable of.