“Ukraine is preparing to legalize cryptocurrencies: a chance for the budget or a risk for the economyThe legalization of cryptocurrencies can bring additional revenues to the budget of Ukraine, but requires strict control. Experts
assess the advantages, risks and expectations of this process.”, — write: unn.ua
The National Bank presented and submitted to the International Monetary Fund for study the concept of state control over the cryptocurrency market, which is based on European MiCA (Markets in Crypto-Assets) standards. Two draft laws on regulating the circulation of virtual assets in Ukraine are currently registered in the Verkhovna Rada, which are also an initiative to streamline the market, which already de facto exists in the shadows.
According to the head of the Committee of Economists of Ukraine, Andriy Novak, the legalization of cryptocurrencies in Ukraine is only a matter of time.
The legalization of cryptocurrencies in Ukraine is probably an inevitable story, because a very large number of Ukrainians keep their savings in cryptocurrencies and play on this market. And the global cryptocurrency market is also developing very much. Even countries like the United States are thinking about keeping part of the national debt in cryptocurrencies as well
According to Novak, the official recognition of digital assets will attract more Ukrainians to this type of activity and will allow to receive additional revenues to the state budget, which are currently being lost.
It is impossible to say now what the budget revenues from the legal crypto market will be, but any additional revenues, especially in today’s conditions of war and post-war reconstruction, any additional sources for the state budget are always a plus
Novak also predicts the activation of the banking sector after legalization.
Of course, each bank will make its own decision on how it will operate in this market, how it will motivate its clients, as well as new clients, if it operates in this market, then in its own bank. These are additional, competitive conditions for banks operating in our banking system
At the same time, not all experts share the optimism about the legalization of digital assets. Economist Oleg Pendzin warns that the cryptocurrency market is very difficult to control, especially in Ukraine, where there is virtually no appropriate legislative framework. The expert emphasizes that the biggest problem for any state today is the control mechanism.
The blockchain mechanism completely removes all cryptocurrency-related transactions from control. And since this is the case, there is no real control mechanism yet. Theoretically, the only mechanism is indirect control over citizens’ expenses. That is, if you do not formally declare a single penny of income, and then suddenly spend huge amounts of money on some powerful things, then, of course, this should cause great interest among tax authorities. Otherwise, without, let’s say, indirect methods of control, to detect your actual income in crypto is still not very real. Therefore, I have very big doubts that this can be done, especially in Ukrainian realities. Europe has long had control – indirect control over citizens’ spending
Despite the existing risks and doubts, fintech experts refute the impossibility of streamlining the crypto market. Thus, fintech expert and co-founder of the first fintech ecosystem in Ukraine, Concord Fintech Solutions, Olena Sosiedka, in an interview with UNN noted that a two-tier regulation model from the National Securities and Stock Market Commission (NSSMC) and the National Bank of Ukraine is proposed for Ukraine, which will ultimately open up new opportunities to increase the transparency of the digital asset market, as well as clear rules of the game and better protection in the legal field for Ukrainian companies.
The model of dividing regulatory powers between the National Securities and Stock Market Commission and the NBU is a European standard. It allows to clearly delineate responsibility and ensure a systematic approach to market regulation. We will finally move away from chaos and start moving towards clear, transparent rules of the game
At the same time, the fintech expert emphasizes that in order to receive bonuses and advantages, companies must be ready for openness and obligations in the form of obtaining licenses, disclosing information about owners and ultimate beneficiaries, reporting on the volume of their operations, fiscal control and taxation, as well as a number of other norms. Ordinary users will also feel the changes: it will be possible to officially use cryptocurrency, but responsibility will also increase. Transactions will be declared, taxed and carried out through verified platforms. At the same time, the level of protection will increase – services will be responsible and provide support.
Those companies that are already preparing for the new rules will benefit the most. And the state will receive a new source of income in the form of taxes, investments and technological breakthrough
Summarizing, Olena Sosiedka calls the upcoming changes a chance for Ukraine, which should be taken advantage of and lay the foundation for a full-fledged, transparent crypto ecosystem oriented towards European standards.
Let us remind youIn February, it was reported that the virtual currency will soon be legal in Ukraine. The head of the National Securities and Stock Market Commission, Ruslan Magomedov, told the correspondent of UNN that the draft law has already been sufficiently worked out, so it can and should be adopted by the deputies of the Verkhovna Rada. The purpose of legalization is to launch the virtual asset market.
The head of the subcommittee on the functioning of payment and information systems and the prevention of legalization (money laundering) of proceeds of crime, Olga Vasylevska-Smagliuk, said that the Verkhovna Rada plans to adopt a draft law on taxation of crypto assets by the end of this year. This will allow tracking cryptocurrency transactions in accordance with European regulations.