Ministry of economy of Ukraine proposes the concept of regulation of cryptocurrency

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The Ministry of economic development and trade of Ukraine initiates the adoption of the concept of state policy in the field of virtual assets to create a clear regulatory environment for cryptocurrencies.

According to estimates of the Office of effective regulation, in 2017 Ukraine was in the TOP-10 countries by the number of users of digital currencies. According to expert estimates, the size of the segment mining in Ukraine, more than 100 million USD per year. The volume of ICO holding companies of Ukrainian descent or placing teams in 2017-2018 is about 100 million dollars.

Despite this, in Ukraine today there is legal uncertainty regarding activities associated with cryptocurrencies, including the definition of their legal status, taxation of transactions with them, the capacity to enter into smart contracts.

In the end, the cryptocurrency market is becoming a shadow character that leads to negative consequences for all stakeholders: lack of adequate protection of the rights and interests of consumers of cryptocurrency, the complexity of the market participants in the issues of legal classification of their activities, banking, foreign investments, ICO Ukrainian companies.

“The state in turn receives less taxes and foreign exchange earnings. It is not possible to carry out financial monitoring in this area due to the lack of statistical information. Result in lost foreign investment and opportunities to create new high-paying jobs,” say the representatives of the Ministry of economic development and trade.

The concept proposes at the legislative level definitions of key terms related to virtual assets, such as a “virtual currency”, “virtual assets”, “ICO/ITO”, “mining”, “smart contract”, “token”.

The implementation of the Concept provided for the period up to 2021 in two stages.

In the first phase in 2018 or 2019 will be determined by the legal status of crypto-currencies; recognition of entities providing exchange services of crypto to Fiat and Vice versa; monitoring and analysis of problems and development trends of market of virtual assets and virtual currencies with a view to formulating proposals for improving regulatory policy.

In the second phase in 2020-2021 years provides recognition of operators of cryptocurrency wallets with entities of initial financial monitoring; development of special legislation regulating the use of virtual assets, smart contracts and tokens, the holding of ICO.

The implementation of the Concept will also allow the Ukrainian legislation in the sphere of virtual currencies fit in this field with the EU legislation.

For the creation of adequate law Ministry invites discussion on the concept of experts in the field of digital currencies, entrepreneurs, and other stakeholders.

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