Ukraine to legalize cryptocurrencies > Bill passed 2nd reading

[DarkDays]

Yesterday, September 8, 2021, the Ukrainian Parliament voted for the Virtual Assets Bill. What it means is that, holders of such assets will legally exchange and declare them, and enables companies to register as blockchain business.

Here are the main points of change brought by the bill:

• cryptocurrencies will be legal;
• market players will be entitled to judicial and other ways of protecting virtual assets rights;
• entities in Ukraine will be entitled to operate international exchanges where virtual assets are traded. However, for this, they (like other providers of services related to cryptocurrencies) will have to pass state registration in Ukraine and submit reports on their activities to the competent authorities;
• the Ministry of Digital Transformation will be the regulator of the virtual assets market; in some cases, the National Bank of Ukraine and the National Securities and Stock Market Commission will also have the authority;
• according to the bill, there will be a new regulator – the National Virtual Assets Regulatory Service (NVARS), which will issue licenses to crypto companies in Ukraine;
• financial monitoring of the virtual assets market will be going under the recommendations of FATF (Financial Action Task Force).

https://decrypt.co/80514/bitcoin-hungry-ukraine-moves-legalize-cryptocurrency

https://cryptopotato.com/ukraine-passes-decree-to-legalize-cryptocurrencies/

So, it looks like Ukraine is stepping in similar footsteps as El Salvador. Hopefully, the bill gets approved for good, and after that it will be interesting to see which other countries will take a similar pro-crypto legalisation approach.

[Goffy]

Hi. Sorry, I have an off-topic question. I live in Kiev. They want to buy a car from me through https://cryptoine.com/yuki-inu/. But I don't know what to do with. Is it tax free?

[velosepur]

Nice news from there. Lets wait official confirmation by government and full details about financial organising and implementation. National Bank of Ukraine is important factor here now I think.

[BOAEDAN]

As digital technology advances, the Ukrainian government begins to legislate on cryptocurrencies. While the country's major e-banks are preparing to launch debit cards featuring Bitcoin (BTC) trading. If Ukraine legalizes bitcoin, this is a good step, but we'll just have to wait and see what next steps the Ukrainian government will take..

[mrongoz_imut]

Indeed, Ukraine's move to legalize crypto, it can be said that it is almost fulfilled, because the Ukrainian authorities are also continuing to develop a series of bills related to digital currencies. Oleksandr Bornyakov, Deputy Minister of the Ministry of Digital Transformation, announced last Wednesday that the authorities recommended the adoption of an updated draft law "On Virtual Assets".

[NeuroticFish]

cryptocurrencies will be legal

They were not illegal before, so the legal status didn't actually change. See: https://bitcointalk.org/index.php?topic=5359071
It will just get regulated and probably taxed.

But I don't know what to do with. Is it tax free?

You may have to pay - sooner or later - tax for capital gains. But best is to ask from somebody familiar with the tax in your country (i.e. probably not somebody from the forum).

[Kakmakr]

The difference between the Ukrainian Bill and El Salvador is that the Ukrainian government is not accepting it as legal tender, so you can trade it as a Commodity in a centralized and regulated environment, but it is not recognized as a Currency.

So, yes... it is good that it is not banned... but it is bad news when they start regulating it and identifying people behind the tokens. The government can then confiscate it, like they did with Gold in the US. (They simply raid the centralized exchanges and they take the coins in Cold storage)  

You should be your own Bank..... You should control your Private keys.  

[Jating]

^^ Yes, this one will be the case, legalised and then tax by the government. Still welcoming development to hear a country that is pro-crypto somewhere in Europe. So this is a win win, specially for Ukrainian who have been in crypto for so long because finally the the government are going to support it. And this is another case for developing countries to really adopt crypto, maybe we can call it sort of experiment  and then we see how it goes.

[yazher]

Once this bill is finalized and they will legally use bitcoins as one of their regular currency in their country, it will make a domino effect on other countries especially when they see some good things happening with the help of these implementations. Except for those countries who totally block or banned the use of bitcoins, the other countries are just waiting to see some positive results from El Salvador and now Ukraine. then they will start to move to make their own bills about its implementation to give their citizens a chance to take advantage of these new opportunities.

[AicecreaME]

Yesterday, September 8, 2021, the Ukrainian Parliament voted for the Virtual Assets Bill. What it means is that, holders of such assets will legally exchange and declare them, and enables companies to register as blockchain business.

Here are the main points of change brought by the bill:

• cryptocurrencies will be legal;
• market players will be entitled to judicial and other ways of protecting virtual assets rights;
• entities in Ukraine will be entitled to operate international exchanges where virtual assets are traded. However, for this, they (like other providers of services related to cryptocurrencies) will have to pass state registration in Ukraine and submit reports on their activities to the competent authorities;
• the Ministry of Digital Transformation will be the regulator of the virtual assets market; in some cases, the National Bank of Ukraine and the National Securities and Stock Market Commission will also have the authority;
• according to the bill, there will be a new regulator – the National Virtual Assets Regulatory Service (NVARS), which will issue licenses to crypto companies in Ukraine;
• financial monitoring of the virtual assets market will be going under the recommendations of FATF (Financial Action Task Force).

https://decrypt.co/80514/bitcoin-hungry-ukraine-moves-legalize-cryptocurrency

https://cryptopotato.com/ukraine-passes-decree-to-legalize-cryptocurrencies/

So, it looks like Ukraine is stepping in similar footsteps as El Salvador. Hopefully, the bill gets approved for good, and after that it will be interesting to see which other countries will take a similar pro-crypto legalisation approach.

This is another great news for our community. The countries are now stepping their game up and are making bold moves to improve their economy such as the introduction of a financial system wherein the people have full control over their funds. Cryptocurrency is slowly making it to the center aisle. It's very nice to read things like these because finally, the cryptocurrency community is being adapted little by certain countries. Hopefully, there would be more countries that will do the same in the near future so that more people will be aware of what crypto has to offer.

[dkbit98]

Dominos are slowly starting to fall and I am not really surprised to see Ukraine legalize Bitcoin, they are holding BTC for years and even their state officials publicly announced they hold over 46,000 Bitcoins in 2020 and 2021.
It would be great to see Ukraine making one more step and making Bitcoin a legal tender and second currency along their national currency, but if they won't do it Panama and other countries are ready, maybe Bulgaria is next one the line.
According to buybitcoinworldwide website government of Ukraine holds 46,351 BTC worth over 2 billion dollars with today prices, and Bulgaria is even better with 213,519 Bitcoins.
El Salvador's 550 BTC sure looks tiny compared with this, but some other not so smart countries have big zero in their wallets.


https://www.buybitcoinworldwide.com/treasuries/

[zanezane]

Will this mean that crypto will be taxed in Ukraine if it passes the second reading? What's going to happen next after this one? And will the atmosphere of crypto in the country going to be much stricter? And would it protect the users against malicious entities?

[Marvell1]

The difference between the Ukrainian Bill and El Salvador is that the Ukrainian government is not accepting it as legal tender, so you can trade it as a Commodity in a centralized and regulated environment, but it is not recognized as a Currency.

So, yes... it is good that it is not banned... but it is bad news when they start regulating it and identifying people behind the tokens. The government can then confiscate it, like they did with Gold in the US. (They simply raid the centralized exchanges and they take the coins in Cold storage)  

You should be your own Bank..... You should control your Private keys.  

Yes! Although Bitcoin is legal in Ukraine, that does not mean BTC will become legal tender in this country. This would require another bill to enforce. But with the situation being so good, I believe this could happen in the near future.

[avikz]

Yesterday, September 8, 2021, the Ukrainian Parliament voted for the Virtual Assets Bill. What it means is that, holders of such assets will legally exchange and declare them, and enables companies to register as blockchain business.

That's what we need, that's what we all were waiting for. It seems Ukraine is following the footsteps of El-Salvador through this virtual asset bill. That's what will bring granular level adoption into play which has more value than corporate adoption and billions of dollara of investment to rot in corporate coffers.

I saw a glimpse of a news today morning that Standard Chartered crypto desk has analyzed the situation and predicted 100k by the beginning of 2022. Quite possible looking at such wonderful news from around the world.

[electronicash]

they created a new regulator NVARS besides the existing. thats like taking it very seriously but if cryptocurrency are just going to be a commodity, this bill's purpose is just for getting tax from its users not actually using BTC as currency.

a good step though. maybe after this law, they will also follow El Salvador.