Ukraine to Legalize Cryptocurrencies Within 3 Years
October 29, 2018 5:02 pm
The government of Kiev announced that it would legalize cryptocurrencies to regulate the fintech sector. The announcement is a part of a new public policy developed by the economy ministry. The process may take up to three years to complete. The industry built around cryptocurrencies should become a legitimate part of the country’s economy.
The new regulatory concept is going to be implemented in two stages. These stages include the legal status of cryptocurrencies, trading platforms dealing with cryptocurrencies. The implementation must be decided within 2018 and 2019.
By the end of next year, the Ukrainian government will be analyzing the market for identifying trends and outstanding issues. Analyzing the market will help to put forward adequate proposals to regulate the whole sector.
Ministry of Economic Development and Trade has published a document for the next stage, 2020-2021. The document stated that the next stage would recognize cryptocurrency wallet providers and custodial platforms as “subjects of primary financial monitoring.”
Ukrainian lawmakers are also expected to draft and adopt legislation for regulating Initial Coin Offerings (ICOs), tokens and the use of smart contracts. The economy ministry also said that the implementation of its regulatory concept would allow crypto companies to get access to banking services. This would also attract more capital through regulated token sales.
The authority included that legal uncertainty can let businesses face many difficulties. The industry will remain largely part of the shadow economy.