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Officials have revealed that Ukraine intends to implement the crypto market rules approved by the European Parliament. While the government is already moving in that direction, the tax authority has issued a clarification regarding the taxation of income resulting from cryptocurrency transactions.
A regional leader in crypto adoption, Ukraine is now planning to follow in the footsteps of the global leader in crypto regulation, the EU. Statements in Kiev have indicated that the Ukrainian authorities will incorporate the new EU norms into the country’s legal framework.
On Thursday, European lawmakers gave their final approval to the Markets in Crypto Assets (MiCA) package. It is the world’s first comprehensive attempt to regulate the crypto space. It introduces licensing for crypto service providers and investor protection mechanisms.
“This is a truly historic event, I am sure that Ukraine will be one of the first countries to implement this regulation in national legislation,” commented Yuriy Boyko, a 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 key stakeholders. “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 a 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 cryptoassets are legal in Ukraine as well,” confirmed Yaroslav Zheleznyak, a member of Ukraine’s parliament, who took to Telegram to express his excitement about the regulatory development.
Lawmakers in Ukraine, a candidate for EU membership, 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 adopted again in February 2022, before he signed it to law. It should enter into force after deputies of the Verkhovna Rada approve relevant amendments to the Tax Code.
While the country’s crypto tax rules have not yet been introduced, the Lviv office of the State Tax Service of Ukraine has taken matters into its own hands and clarified the taxation of crypto-related income for individuals. “Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income,” the regional tax administration explained in a notice published this month.
Do you expect other non-EU countries in the region to adopt the MiCA rules in their jurisdictions? Tell us in the comments section below.
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