Officials have declared that Ukraine is set to implement the crypto market rules accepted by the European Parliament. As the government is already making progress in that direction, the tax service has issued a notice regarding the taxation of income generated from cryptocurrency transactions.
Ukraine to Adopt EU Crypto Regulations Into National Law
As a leader in cryptocurrency adoption in the region, Ukraine is now looking to follow the path of the world’s foremost crypto regulator, the European Union. Statements out of Kyiv have revealed that Ukrainian authorities are going to incorporate the new EU regulations into the country’s legal structure.
On Thursday, European lawmakers gave the final approval to the Markets in Crypto Assets (MiCA) package. It is the globe’s first comprehensive attempt to regulate the crypto space, introducing licensing for crypto service providers and mechanisms for investor protection.
“This is a truly historic event, and I am sure Ukraine will be one of the first countries to implement this regulation into national legislation,” commented Yuriy Boyko, member of the National Securities and Stock Market Commission of Ukraine (NSSMC).
Boyko also noted that the draft provisions to achieve this are almost ready and government officials will soon start talks with the main stakeholders. “The NSSMC, together with its partners, is actively working on the launch of the virtual assets market in Ukraine, and the MiCA regulation was taken as the basis,” he emphasized.
“Along with our colleagues from the NSSMC, we are already working on the implementation of some of the MiCA provisions so that crypto assets are legal in Ukraine as well,” said Yaroslav Zheleznyak, member of Ukraine’s parliament, in a Telegram post expressing his excitement about the regulatory progress.
Lawmakers in Ukraine, an EU membership hopeful, first adopted a draft law “On Virtual Assets” in September 2021, but the bill was returned by President Volodymyr Zelenskyy, revised according to his recommendations and passed again in February 2022, before he signed it into law. It should come into effect after deputies in the Verkhovna Rada approve relevant amendments to the Tax Code.
Though the nation’s crypto tax rules are yet to be introduced, the Lviv Office of the State Tax Service of Ukraine has taken the matter into its own hands and clarified the taxation of crypto-related income for private individuals. “Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income,” the regional tax administration clarified in a statement issued this month.
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