Publication date: 08.06.2024
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Legal Status of Cryptocurrency in Ukraine
Cryptocurrency is a relatively new phenomenon in the world of finance, and its legal status in many countries, including Ukraine, has not yet been finalized. In this article, we will consider the legal status of cryptocurrency in Ukraine as of 2024.
Legislative Base
Law "On Virtual Assets"
In 2021, the Verkhovna Rada of Ukraine adopted the law "On Virtual Assets", which establishes the legal basis for the circulation of virtual assets, including cryptocurrencies. The law defines virtual assets as an intangible good, which is expressed in the form of data and can be the object of civil rights.
The main provisions of the law:
Recognition of cryptocurrencies: The law recognizes cryptocurrencies as virtual assets.
Regulation of activities: The law sets requirements for service providers related to virtual assets, such as crypto exchanges and crypto wallets.
Taxation: The law provides for the taxation of transactions with cryptocurrencies in accordance with the tax legislation of Ukraine.
Tax Code of Ukraine
The Law "On Virtual Assets" made changes to the Tax Code of Ukraine, defining the procedure for taxation of transactions with cryptocurrencies. According to these changes:
Income Tax: Cryptocurrency sales transactions are subject to income tax at the standard rate.
Personal income tax: Personal income from transactions with cryptocurrencies is taxed at the rate of 18%.
Regulators
The National Bank of Ukraine (NBU) and the Ministry of Digital Transformation of Ukraine act as the main regulators of the virtual assets market.The NBU oversees financial aspects, while the Ministry of Digital Transformation is responsible for technical and regulatory support.
Legal Status
Recognition of Cryptocurrencies
In Ukraine, cryptocurrencies are recognized as virtual assets, but not as an official means of payment. This means that cryptocurrencies can be used for financial transactions, but cannot be accepted for payment on an equal footing with the national currency, the hryvnia.
Legality of Operations
The transactions of buying, selling, exchanging and storing cryptocurrencies are legal, but they are subject to appropriate regulation and taxation. Service providers, such as crypto exchanges, must be licensed and comply with the requirements of the Virtual Assets Act.
Protection of Investors' Rights
The Law "On Virtual Assets" provides for the protection of the rights of investors and users of cryptocurrency services. This includes:
Information transparency of service providers.
Protection of personal data of users.
Dispute resolution mechanisms.
Challenges and Prospects
Challenges
Despite the adoption of the legislative framework, the cryptocurrency market faces a number of challenges:
Lack of complete legal certainty: Some aspects of the use of cryptocurrencies require additional regulation.
Risks of Fraud and Illegal Activity: Without proper controls, the cryptocurrency market can become an environment for financial crimes.
Lack of full integration with the financial system: Many financial institutions are not yet ready to work with cryptocurrencies.Perhaps you will be interested in reading articles on the following topics: liquidation of LLC closing of FOP Kyiv close FOP Kyiv liquidation of FOP Kyiv liquidation of company close company closing of fop cues closing of fop cues liquidation of fop cues liquidation of com
