Ukraine Embracing Europe’s Cryptocurrency Regulations with Clarity on Taxation

"Ukraine Takes Steps to Adopt EU Crypto Regulations as Tax Service Clarifies Cryptocurrency Taxation Laws"

Ukraine is set to follow in the footsteps of the European Union (EU) in implementing crypto market regulations. The government is already moving in this direction, with the National Securities and Stock Market Commission of Ukraine (NSSMC) working on draft provisions to incorporate the new EU norms into the country’s legal framework. The EU’s Markets in Crypto Assets (MiCA) package is the world’s first comprehensive attempt to regulate the crypto space, introducing licensing for crypto service providers and mechanisms for investor protection. Yuriy Boyko, a member of the NSSMC, said that Ukraine will be one of the first countries to implement this regulation into national legislation.

Lawmakers in Ukraine first adopted a draft law “On Virtual Assets” in September 2021, but the bill was returned by President Volodymyr Zelenskyy, revised in accordance with his recommendations, and passed again in February 2022 before he signed it into law. It should enter into force after deputies in the Verkhovna Rada approve relevant amendments to the Tax Code. While the nation’s crypto tax rules are yet to be introduced, the Lviv Office of the State Tax Service of Ukraine has clarified the taxation of crypto-related income for private individuals. According to a notice published this month, “income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income.”

Ukraine is a candidate for EU membership and has been a regional leader in crypto adoption. The country’s authorities have been working on the launch of the virtual assets market in Ukraine, and the MiCA regulation was taken as the basis. Yaroslav Zheleznyak, a member of Ukraine’s parliament, confirmed that he and his colleagues are already working on the implementation of some of the MiCA provisions so that crypto assets are legal in Ukraine as well.

The implementation of the EU’s MiCA package is a historic event, and Ukraine is expected to be among the first countries to incorporate the new regulations into national law. The NSSMC is actively working with its partners to achieve this goal, and officials will soon start talks with the main stakeholders. As the crypto market continues to evolve, it is likely that other non-EU countries in the region will introduce the MiCA rules in their jurisdictions.

In conclusion, Ukraine is taking a step towards regulating its crypto market by incorporating the EU’s MiCA package into its legal framework. The country’s authorities are working on draft provisions to achieve this goal, and officials will soon start talks with the main stakeholders. While Ukraine’s crypto tax rules are yet to be introduced, the Lviv Office of the State Tax Service of Ukraine has clarified the taxation of crypto-related income for private individuals. The implementation of the EU’s MiCA package is a historic event, and Ukraine is expected to be among the first countries to incorporate the new regulations into national law.

Martin Reid

Martin Reid

Leave a Replay

Scroll to Top