Ukrainian MP: 42% of New Cryptocurrency Law Agreed Upon

The Ukrainian law “On Virtual Assets,” with new amendments addressing the requirements of the FATF and MiCA, is undergoing coordination with the participation of the Ministry of Digital Transformation, the NBU, and the NSSMC. This was reported by Member of Parliament Yaroslav Zheleznyak on his Telegram channel.

According to him, the working group has so far reviewed 53 out of 125 articles of the document.

“Many discussions have been postponed to the second reading, but roughly speaking, 42% of the bill has been agreed upon before the first reading,” the MP wrote.

He expects the full text of the updated law to be prepared by the end of 2024.

This timeline aligns with the requirements of the IMF, which is providing technical assistance to the Ukrainian authorities in implementing reforms, particularly in defining the principles of virtual asset taxation in accordance with EU rules.

In the latest report by the European Commission, the issue of cryptocurrency regulation in Ukraine was not extensively covered. It was only mentioned that in the areas of oversight of virtual asset service providers and financial investigations, local authorities “still need to make further progress.”

The enactment of the law “On Virtual Assets,” approved in 2021, has been postponed until the adoption of cryptocurrency taxation.

In November 2023, relevant amendments from the NSSMC were registered in the Verkhovna Rada. They propose a rate of 18%, which has been criticized by the public.

An alternative document authored by the Ministry of Digital Transformation suggests a preferential tax with a phased increase in rates—from 5% to 18%.

The task of developing new cryptocurrency regulations has been included in Ukraine’s National Revenue Strategy for 2024-2030 and in the €50 billion reform plan.