Ukraine has begun developing its crypto regulation framework with the help of international consultants

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(Kitco News) – Ukraine is moving forward with plans to develop its digital asset ecosystem following the first meeting of its Advisory Council on the Regulation of Virtual Assets, which was held on Thursday. The National Securities and Stock Market Commission organized the meeting according to a press release from the government.

The goal of the meeting was to start the process of developing a draft law on amendments to the Tax Code of Ukraine that lays out the specifics of how the country will tax operations with virtual assets and make amendments to the country’s Law “On Virtual Assets.”

The “On Virtual Assets” law, which established the National Securities and Stock Market Commission of Ukraine and the National Bank of Ukraine as the two major regulators of the crypto market, was signed by Ukrainian President Volodymyr Zelensky in March 2022.

“Today we must concentrate our efforts on joint work on the introduction of the virtual asset market in Ukraine,” said Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine. “There should be maximum involvement of all parties in this process.”

The inaugural meeting was attended by representatives of the President’s Office, management and specialists of the National Bank of Ukraine, representatives of the deputy corps, specialized bodies, leading market specialists and other interested parties.

According to Ruslan Magomedov, the Chairman of the National Tax Agency of Ukraine, the commission is already working with several international colleagues on the implementation of the European MiCA regulation in the Ukrainian virtual assets market including Ernst&Young, the USAID Financial Sector Reform project, and other specialized bodies.

“It is these joint developments that will become the foundation of key changes to the basic law on virtual assets and the Tax Code of Ukraine,” Magomedov said.

During the meeting, attendees discussed the importance of a quick launch of the virtual assets market in Ukraine. They reviewed the amendments that have already been developed for the “On Virtual Assets” law including the scope of application, the definition of terms and the concept of taxation.

According to the press release, “the main task of the Advisory Council is to develop and agree on a draft law on amendments to the Tax Code of Ukraine regarding the specifics of taxation of operations with virtual assets and amendments to the Law of Ukraine ‘On Virtual Assets’.”

The council will also help with the coordination of other issues related to the regulation of activities in the virtual asset market.

“The goal is simple – to make crypto circulation in Ukraine legal and safe, but according to the principle of “do no harm”, so that the market receives not regulation, but incentives for development and competitive advantages,” said Yaroslav Zheleznyak, People’s Deputy of Ukraine. “This is an important step forward for our country both from an economic and international point of view.”

Ukraine has an active blockchain community and has been ramping up its cryptocurrency-related endeavors throughout 2022. In November, the National Bank of Ukraine (NBU) published a draft concept for an ‘e-hryvnia’, a central bank digital currency (CBDC) version of its national currency.