Ukrainian MP Highlights Challenges in Bitcoin Market Legalisation

Ukrainian MP and co-author of amendments to the law “On Virtual Assets,” Yaroslav Zheleznyak, explained the reasons behind the delay in implementing cryptocurrency market regulations.

According to him, the working group is striving to find a balance between adhering to AML standards, taxation, and creating business-friendly rules.

“[It is unacceptable for our jurisdiction to be used for money laundering by all the drug cartels in the world, landing us immediately on the FATF blacklist. We must also avoid] ‘miscoding’ and other tax loopholes resulting in the loss of tens of billions. Most importantly, we must not over-regulate to the point where no one can open anything related to crypto,” the MP wrote.

Zheleznyak emphasised that he does not wish “to cement this mess with his own hands,” where cryptocurrency companies become legitimate targets for law enforcement.

In addition to members of the Verkhovna Rada, the discussion of the new document involves the NSSMC, the National Bank, the Ministry of Finance, and the Ministry of Digital Transformation, with technical assistance from the IMF.

Despite the complexity of the issue, the MP anticipates significant progress by the end of 2024.

“The main thing is that among the stakeholders of state bodies, there are none who oppose or hinder. A normal, constructive, professional discussion continues,” he concluded.

Previously, ForkLog reported that Yaroslav Zheleznyak declared cryptocurrency savings exceeding 17,000 UAH.

The enactment of the law “On Virtual Assets,” approved in 2021, has been postponed until the taxation of digital asset transactions is established. Additionally, the text of the regulatory act has been updated to align with the European MiCA regulation.

Meanwhile, the Ministry of Digital Transformation has presented a draft of an alternative law.

The IMF has shifted the deadline for developing new cryptocurrency regulations in Ukraine from June to the end of December 2024. This task is also part of Ukraine’s National Revenue Strategy for 2024-2030 and included in the €50 billion reform plan.