Ukraine to Adopt Europe’s Crypto Rules and Clarifies Taxation – Ukraine, a top adopter of cryptocurrency in its region, intends to align with the European Union’s position as a worldwide leader in crypto regulation. Officials in Kyiv have suggested that Ukrainian policymakers will integrate the EU’s latest regulations into their national legal framework. The Markets in Crypto Assets (MiCA) package has been granted its ultimate authorization by European lawmakers, making it the world’s first all-encompassing effort to regulate the cryptocurrency industry.
It entails the introduction of licenses for cryptocurrency service providers as well as systems for safeguarding investors. “This is a truly historic event, 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 said that draft provisions to achieve that are almost ready and 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. “Together 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,” confirmed Yaroslav Zheleznyak, member of Ukraine’s parliament, who took to Telegram to express his excitement about the regulatory development.
In September 2021, lawmakers in Ukraine, which is seeking EU membership, originally approved a preliminary version of the “On Virtual Assets” bill. However, President Volodymyr Zelenskyy sent it back, and it was subsequently amended in accordance with his suggestions and re-approved in February 2022 before being signed into law. Following the approval of relevant changes to the Tax Code by the Verkhovna Rada, the law should take effect.
Even though the country’s crypto tax regulations have not yet been implemented, the Lviv Office of the State Tax Service of Ukraine has taken it upon itself to specify the taxation of personal crypto-related earnings. The regional tax authority announced this month that “Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income.”