Ukraine’s Ministry of Digital Transformation comments on its exclusion from cryptocurrency regulators

The authors of the Law on Virtual Assets (VA) in the updated version excluded the Ministry of Digital Transformation of Ukraine from the list of cryptocurrency market regulators. In an exclusive comment for ForkLog, the ministry described its ongoing involvement in the development of the industry.

In the current edition of the law, the formulation and implementation of policy in the field of virtual asset turnover are entrusted to the National Commission on Securities and the Stock Market (НКЦБФР). The Ministry of Digital Transformation welcomed this move.

“We believe that there is a certain logic in the president’s position to abandon the creation of a new body. This could speed up the launch of the market,” the ministry’s press service said.

The National Securities and Stock Market Commission has been assigned the functions of creating a registry of crypto platforms, which previously were under the Ministry of Digital Transformation. The ministry, for its part, already had groundwork on this front:

“In partnership with the Swiss embassy and the Swiss company Verum Capital, we have developed terms of reference for creating a registry of service providers.”

The agency found it difficult to assess how convenient the license-issuance procedure developed by the НКЦБФР will be, since the relevant regulatory documentation has not yet been approved.

At the same time, the Ministry stressed its interest in building an efficient and developed digital economy of Ukraine, a key part of which will be the VA market. Earlier the ministry participated in the development of the bill “On Amendments to the Civil Code of Ukraine,” which introduces VAs into the existing system of civil-law rights.

“From our side, we are ready to assist the new regulator with any questions concerning the development of virtual assets, and to share the developed documentation,” the ministry said.

One of the Ministry’s points of contact with the cryptocurrency market will be the recently launched a special legal regime, Diia City. Although Diia City is primarily geared toward the IT sector, cryptocurrency companies may potentially become its residents.

“All the tax benefits of the Diia City regime will extend to crypto companies that become its residents,” the Ministry assured.

This emphasis on creating a favorable tax environment within the ministry was cited as a key step toward establishing a conducive jurisdiction for virtual assets in Ukraine.

According to available information, in the coming days the Verkhovna Rada will introduce a bill “On Amendments to the Tax Code of Ukraine,” regulating all aspects of taxation of VAs and the activities of professional participants in this market. introduce a bill.

“The Ministry is ready to share existing developments regarding possible approaches to the taxation of virtual asset operations,” the ministry added.

Back in February, the Verkhovna Rada of Ukraine adopted the updated law “On Virtual Assets,” regulating cryptocurrency operations on the territory of the country. It recognises VAs as intangible property and civil-law rights, but not as a means of payment. Assets are divided into secured and unsecured. The document also introduces the category of financial VAs.

The law will come into force after Parliament passes amendments to the Tax Code. When that will occur is unknown.

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