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The Ukrainian government is cooking up a crypto-related bill that when passed, would allow its people to keep, spend, and exchange cryptocurrencies legally. This legislation is said to possibly tone down taxes for its residents, not to mention that it will comprehensively keep an eye on the realm of crypto.
Cryptocurrency bill in Ukraine
Oleksandr Bornyakov – the deputy minister of Ukraine’s Ministry of Digital Transformation is pretty much self-assured that it would be quite legal to pay with cryptocurrencies within the country via payment intermediaries that allow crypto-to-fiat conversions. Bornyakov sat down with the Ukrainian financial website Minfin where he said that the draft of this virtual assets bill made it clear that cryptocurrencies are not recognized as legal tender in Ukraine as it only greenlights crypto purchases.
It’s worth noting, however, that this legislation specifies that local payment processors would still be able to roll out their services in the conversion of crypto to fiat to enable payments coming from crypto as it states that the legislation in the country also bars its people to pay in dollars, though pointed out that Ukrainians can pay using a so-called dollar card. Further, it was also noted that these currencies are instantly converted during payment hence, making it pretty much legal to pay with cryptocurrencies, through an intermediary.
Bornyakov’s sure of it
The deputy minister is expectant that there will be a market of intermediary services for payment of goods/services via cryptocurrency as the crypto legislation will officially legitimize both the processes of cryptocurrency trading and reporting. Bornyakov went on to mention that it will expand the possibilities of their (crypto) use.
Some concerns
The interview also tackled the topic of several cryptocurrencies abroad disappearing in the face of the blockchain (fraud) and was asked what security measures do they have in the event the e-wallets of their people have become ensnared in fraudulent activities. Bornyakov emphasized that cases of fraud are not just happening within the realm of crypto as these have been happening in the classical economy with fiat money.
He explained that for such scenarios, it will depend on the country in which the cryptocurrency exchange is registered. This means that if the exchange service is registered in China, the person should get in touch with the government agency of that country that handles such cases.
Bornyakov went on to state that guarantees for Ukranian cryptocurrency buyers will increase since certain cryptocurrencies will be receiving work permits in the country.
Speaking of permits, this too was asked as the deputy minister said that it is indeed a requisite. He also stated that cryptocurrencies will no longer need a license in Ukraine adding that a work permit is simpler than acquiring a license. Further, he said that getting one will not be that difficult adding that one will “not have to register a legal entity in Ukraine. The main thing to prove here, though, is that there is the necessary amount of capital and there are no individuals among its founders are on Ukraine’s blacklist.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
