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New Ukrainian Bill Supports Bitcoin and Encourages Bitcoin Mining

Oct 20, 2017 Posted /  12681 Views

New Ukrainian Bill Supports Bitcoin and Encourages Bitcoin Mining

Up to Two Bills aim at opening up a way for crypto currency to legally be used in Ukraine has so far been submitted to the Ukrainian Parliament. The Bill proposes derivatives for Crypto currency and advocates for reduced taxes on Cryptocurrency and Electricity Bills for Bitcoin Mining.

Ukrainian Legislators are moving a step forwards towards achieving a Favorable cryptocurrency Environment in Ukraine. This is seen by the submission of two cryptocurrency Favoring Bills in the Ukrainian parliament waiting to be passed into laws.

Second Cryptocurrency Related Bill makes it to Ukrainian Parliament Again.

Just a few weeks the first Bill on Cryptocurrency was submitted to the Ukrainian parliament for a possible discussion and making it a law. This was closely followed up by a second Bill which was once again submitted last week to parliament awaiting debate. The Bill entitled “On the stimulation of the market of cryptocurrencies and their derivatives in Ukraine” aims to look to deploy the use of Cryptocurrency in Ukraine with its related advantages. The will seek to link cryptocurrency regulation with the already existing Financial regulations in Ukraine. The head of the Parliamentary Committee on Financial Policy and Banking, Serhiy Rybalka, reported to an a news agency saying,

It makes no sense to reinvent the wheel and invent new rules for it. The most effective model is the adaptation of cryptocurrencies to the already existing legislation.That is why we propose to recognize cryptocurrency as a financial asset

How the Bill wants Cryptocurrency to be regulated In Ukraine

The Bill clearly explain the need to reduce levying unnecessary unfair taxes on Cryptocurrency advising for a rather fair tax that wouldn’t hurt the Cryptocurrency Ecosystem. The second Bill submitted to parliament last week entitled “Reduced tariffs for electricity and the simplest taxation” aims to create a favourable environment to allow the flourishing of cryptocurrency. According to the Bill only a 2% fee should be paid as taxes during exchain of a cryptocurrency for the Fiat Currency. Both of the Bills acknowledges the need for government control on cryptocurrencies. The first Bill nominates the National Bank of Ukraine to be the main regulator of cryptocurrency. The second Bill However puts the National Financial Services commission as the chief regulatory authority for cryptocurrencies in Ukraine. Meanwhile both of the Bills clearly defined Cryptocurrency derivatives none of the Bills included a clause about Initial Coin Offerings (ICOs). ICOs has become one of the most important tools used by startup companies in the Cryptocurrency and Fintech Industry to obtain capital from the public. The second Bill also stress Anti Money Laundering (AML) and Know Your Customers (KYC) laws as a pre qualification for registering new firms.

Ukraine Continues to Welcome Cryptocurrencies

Currently Ukraine does not have any law regulating Cryptocurrencies yet the country is open to the new technology as it awaits laws to be put in place. Recently the Ukrainian finance minister Oleksandr Danylyuk posted on his Facebook page an information about cryptocurrency in Ukraine saying,

There are many open issues and in Ukraine the status of cryptography is not defined by law, but this does not mean that cryptocurrency is prohibited. Ukraine should monitor world trends and not miss a chance to use new technologies and innovations in the financial sector.”

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Tags: bitcoin Ukraine Regulations Acceptance

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