- Ukraine plans to integrate EU crypto regulation standards into the national legal framework.
- Markets in Crypto Assets (MiCA) package approved by EU lawmakers for comprehensive crypto regulation.
- Lviv Tax Service clarifies taxation of crypto-related income for private individuals in Ukraine.
Ukraine, a recognized leading region for crypto adoption, has expressed its intention to emulate the European Union (EU), a global pioneer in crypto regulation. Reports from Kyiv suggest that Ukrainian officials are aiming to integrate the latest EU standards into their nation’s legal system.
The Markets in Crypto Assets (MiCA) package, which aims to regulate the crypto industry comprehensively, was granted its final approval by European lawmakers on Thursday.
This landmark move makes it the first-ever attempt globally to regulate the crypto space thoroughly. The package entails the implementation of licensing for crypto service providers and the establishment of investor protection mechanisms.
Yuriy Boyko, a member of the National Securities and Stock Market Commission of Ukraine (NSSMC), offered his perspective on the matter.
This is a truly historic event, I am sure Ukraine will be one of the first countries to implement this regulation into national legislation.
Yuriy Boyko, National Securities and Stock Market Commission of Ukraine
In addition, Boyko mentioned that the draft provisions to implement the MiCA regulation into the Ukrainian legal framework are almost finalized, and authorities will soon commence discussions with key stakeholders.
Moreover, he emphasized that the NSSMC, in collaboration with its partners, is actively striving to establish the virtual assets market in Ukraine and that the MiCA regulation serves as the foundation for their efforts.
Yaroslav Zheleznyak, a member of Ukraine’s parliament, confirmed that they are collaborating with the NSSMC to implement some of the MiCA provisions to legalize crypto assets in Ukraine. He expressed his enthusiasm about this regulatory development on Telegram.
Ukrainian lawmakers, who aspire to EU membership, initially approved a draft law titled “On Virtual Assets” in September 2021. However, President Volodymyr Zelenskyy returned the bill, and it was revised based on his recommendations. It was then passed again in February 2022 and signed into law by the President. For the law to come into effect, relevant amendments to the Tax Code must be approved by the deputies in the Verkhovna Rada.
Although Ukraine’s crypto tax regulations have yet to be implemented, the Lviv Office of the State Tax Service of Ukraine has taken the initiative to clarify the taxation of crypto-related income for private individuals.
Meanwhile, in a notice published this month, the regional tax administration stated that “Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income.”
