Today, new technologies allow us to do what a few dozen years ago seemed incredible to us. High technology has touched the financial market. For example, it is not difficult to pay for a goods or service with a cryptocurrency and send money to anywhere in the world. And you can do it completely anonymously.
It is the anonymity of transactions in cryptocurrencies that attracts many persons. Someone tries to avoid taxation, others are interested in earning money on the fluctuations of courses, and someone needs to pay for crimes. The rapid development of the cryptocurrency market forces the Ukrainian authorities to take a decision on the regulation of this market, as repeatedly stated by high-ranking officials.
Secretary of the National Security and Defense Council of Ukraine Oleksandr Turchynov at a meeting of the National Coordinating Center for Cybersecurity on January 11, 2018 stated that the cryptocurrency market in Ukraine can not be left without the attention of the state. Since the lack of control over this market allows the criminal structures to finance terrorism, the sale of weapons, drugs, etc.
Head of the Department of Cyber Police of the National Police of Ukraine Sergey Demedyuk said on January 29 that it is necessary to determine the status of cryptocurrency in Ukraine, because cybercriminals often use them to anonymize their criminal actions. In case of inability in the near future to regulate the status of the cryptocurrency in Ukraine, the state should officially prohibit its turnover,” Demedyuk added.
Bills on the market of cryptocurrency in Ukraine
At the moment, three bills on the cryptocurrency market in Ukraine are registered in the Supreme Council.
No. 7183 dated 06.10.2017 “On Circulation of cryptocurrency in Ukraine” equates the Cryptocurrency to the object of ownership, and not to the payment facility. This bill determines the procedure for identifying subjects of cryptocurrency transactions, as well as the procedure for the creation and operation of cryptocurrency exchanges.
№ 7183-1 dated 10.10.2017 (alternative) “On the stimulation of the market of cryptocurrencies and their derivatives in Ukraine” introduces the need to obtain by the cryptocurrency exchange the status of financial institutions and obtaining a license for their activities. This bill also provides for the taxation of cryptocurrency transactions and the application of administrative penalties for illegal mining of cryptocurrencies.
№ 7246 dated 30.10.2017 “On Amendments to the Tax Code of Ukraine (regarding the stimulation of the market of cryptocurrencies and their derivatives in Ukraine)” provides for exemption from taxation of operations with cryptocurrencies, as well as their mining.
Now the bills are being finalized in the Supreme Council Committee on Financial Policy and Banking. They received a lot of comments both conceptually and technically. The committee supported the initiative of the bill authors and decided to prepare a revised version of the documents. After that they will be submitted to the Supreme Council of Ukraine.
Will the cryptocurrency market in Ukraine be regulated? It depends on the will of our deputies. And for us, it is possible to conduct legal operations with cryptocurrencies and earn money on them.