Ukrainians can legally trade and spend cryptocurrencies, says Ukraine’s digital transformation ministry

Once the new virtual assets law is passed, Ukrainian residents will be able to legally hold, exchange and spend cryptocurrencies. A government official revealed that the legislation will comprehensively regulate the cryptocurrency sector, potentially lower taxes for Ukrainians, and create conditions for new services.
New Regulation Will Create a Cryptocurrency Services Market for UkrainiansUkrainians who own cryptocurrencies will benefit from the Virtual Assets Law as it will introduce investor protection and allow them to legally exchange and declare their crypto holdings. Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine, said in an interview with financial news portal Minfin that the legislation will make virtual assets "a completely legal and common phenomenon for the government and society."
The official also wants to see a whole new market of services that would allow the holding, exchange and payment use of cryptocurrencies. Bornyakov explained that, despite the draft stipulation that cryptocurrencies are not a means of payment in the country, it would be legal to pay with cryptocurrencies through intermediaries that offer instant conversion to Ukrainian hryvnia. The same currently applies to foreign fiat currencies, such as the U.S. dollar, which can be spent via bank cards.
The bill on virtual assets was passed in the first reading of Ukraine’s parliament, the Verkhovna Rada, in December. It has since been amended, and despite criticism from regulators in Kyiv, in June the parliamentary committee on digital transformation recommended its final adoption. In July, government and business representatives unveiled a roadmap to achieve the inclusion of cryptocurrencies in the national economy over the next three years.
Crypto Exchanges Will Need to Apply for Licenses to Operate in Ukraine
Oleksandr Bornyakov also announced that cryptocurrency exchanges will have to obtain a license to provide services to Ukrainians and will be subject to inspections by the regulator. He stressed that this is not a licensing system, as the procedure will be much simpler. For example, foreign-based trading platforms will not need to register as legal entities in this Eastern European country. They will only need to meet certain authorized capital requirements. The minister said:
“We know that the business of virtual assets is global, so if we set registration conditions in Ukraine, cryptocurrency exchanges will not enter our country.”
Regarding the introduction of customer verification requirements, Bornyakov insisted that Ukraine should comply with international recommendations in this area. He explained: "Virtual assets are the future of Ukraine and the world... However, they will not become a mainstream technology if they become a tool for the 'black market' and money laundering." But he also pointed out that the Ukrainian government does not want to hinder the development of this new industry with excessive regulation.
The cryptocurrency law provides for the creation of a new regulator, the National Agency for Virtual Asset Supervision. This will be a completely independent state agency that will issue licenses to cryptocurrency companies operating in Ukraine. Existing regulators such as the Ministry of Finance, the National Bank of Ukraine (NBU), and the National Securities and Stock Market Committee (NSSMC) will have their own responsibilities. For example, the NBU will provide supervision for stablecoins, while the NSSMC will be responsible for cryptocurrency derivatives.
Bornyakov said that the text of the bill related to the taxation of cryptocurrencies and the corresponding amendments to the Tax Code are still under consideration and may be submitted to the Rada in September. The government wants to make it clear that cryptocurrency transactions are not subject to VAT and ensure that only the difference between their purchase and sale values ​​is taxed. The Digital Ministry proposes to reduce the tax rate for individuals from the current 19.5% to 5%.

Source: News.bitcoin.com