A new bill related to cryptocurrency in Ukraine will allow payments in crypto. The relevant bill makes ready in the parliament for the second reading.
Oleksandr Bornyakov, deputy minister of Digital Transformation of Ukraine, is confident that it would be “quite legal to pay with cryptocurrencies,” in Ukraine through payment intermediaries that enable crypto-to-fiat conversions.
The official said in an interview with local financial publication Minfin that Ukraine’s draft bill on virtual assets “clearly states” that cryptocurrencies do not constitute legal tender in the country, only allowing crypto purchases.
“ Cryptocurrency owners will receive a number of benefits. Due to the fact that there will be legislation in this area, they will at least be able to protect their wealth in virtual assets if something happens. Thanks to the legislative regulation of the sphere, they will at least be able to protect the rights to their virtual assets. They will also be able to legally exchange and declare crypto-assets. The process will be completely white.”
Crypto exchanges that plan to operate in Ukraine will need to obtain a special permit. The condition for obtaining a permit should be simplified; the exchange no needs to obtain a license. All exchanges need to carry out mandatory verification of clients and adhere to all requirements of the regulator. Ukrainian need licenses to work with residents of Ukraine.
The New Crypto Bill
However, the bill specifies that the daily requirement payment process would still provide services for converting crypto to fiat. Daily requirement payment processes like shops and restaurants advertise the ability to pay with cryptocurrencies.
The bill clearly states that cryptocurrencies are not a means of payment, but acquiring operations are allowed. “Today, the legislation in Ukraine also does not allow you to pay in dollars, but you can easily pay for purchases with a dollar card. Currencies are converted instantly during the payment. The Virtual Assets bill stipulates that companies will be able to provide services for such conversions. Therefore, in Ukraine, it will be quite legal to pay with cryptocurrencies, but through an intermediary.”
According to Bornyakov, the text of bill amendments to Tax code is continuing for preparation. He expects a plan for taxing income generated from trading cryptocurrencies to be released in September this year.