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The Ministry of economic development initiates the legalization of cryptocurrency

Минэкономразвития инициирует легализацию криптовалютIn Ukraine today there is legal uncertainty.

The Ministry of economic development proposes to adopt the concept of state policy in the field of virtual assets, the purpose of which is to create clear and transparent conditions for conducting activities in the field of virtual assets and currencies.

About it reports a press-service of the Ministry of economic development.

According to estimates of the Office of effective regulation, in 2017 Ukraine was in the top-10 countries by the number of users of virtual currencies. According to expert estimates, the size of the segment mining in Ukraine, more than 100 million dollars a year. The volume of holding ICO/ITO companies with Ukrainian origins or location of the teams in 2017-2018 is about $ 100 million.

Despite this, in Ukraine today there is legal uncertainty regarding activities related to the cryptocurrency, including their legal status, taxation of operations with them, possibilities of the conclusion of smart contracts.

As a consequence, the market for virtual currencies is largely develops in the “shadow” 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 of the legal classification of their activities and use of banking services, attracting foreign investments, ICO/ITO as 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.

The concept proposes at the legislative level to define the basic terms related to virtual assets, such as a “virtual currency” (“cryptocurrency”), “virtual assets”, “ICO/ITO”, “mining”, “smart contract”, “token”.

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