Ukraine Policy to Legalize Cryptocurrency by 2021
Ukraine has plans for a new government policy that should see the country legalize cryptocurrency and push for mass adoption of the underlying blockchain technology.
In November 2018, the country’s Ministry of Economic Development and Trade was said to have set in motion plans to come up with a regulatory framework to help achieve these goals. As per an official statement, the Ukrainian government wants to use the next three years to put into practice guidelines that will acknowledge the use of cryptocurrency as a currency and as a tool for economic development.
The EDT ministry will lobby the legislature to adopt various guidelines targeting cryptocurrencies, crypto mining, initial coin offerings (ICOs), and the smart contracts sectors- which the government would like put in place for full implementation by 2021.
One of the areas the policy targets is the crypto exchange market, with authorities looking to enforce tighter regulations. These are aimed at protecting consumers and other players within the industry from potential risks that are inherent in the industry.
In this phase, cryptocurrency platforms and exchanges must ensure they implement Know-Your-Customer (KYC) and Anti-Money Laundering (AML) procedures. The first part runs up to the end of 2019.
By 2020, the Ukrainian government would focus on the digital space in terms of streamlining guidelines to promote crypto mining. Other sectors in the mix will be crypto custody, tokenization, and use of smart contracts.
According to the ministry, this stage should see the country officially recognize cryptocurrency adoption as a key to tapping into the fourth industrial revolution. The phase should be fully implemented by the end of 2021.
As these plans get underway, crypto commentators and expert within Ukraine have called on the government to end double taxation of cryptocurrencies.
Yuriy Derevyanko, a lawmaker, said last October that legalizing cryptocurrency would work if the government scrapped taxation for at least 10 years.
According to him, crypto has the potential to be the “engine” that drives the country’s economy. This sentiment isn’t that far from what the governments intend in the policy framework: protect consumers, encourage more participants to join the crypto space and enable crypto-related companies and businesses access banking services.
As well as promoting ICOs and security token offerings (STOs), the move could see more and more people begin to use their holdings for payments when buying goods or paying for services.