The new legislation may be adopted by the end of the year and will directly affect the crypto market of Ukraine.

A working group is working on the new bill, which includes specialists from the National Commission on Securities and Stock Market, the Ministry of Digital Transformation, the National Bank, the Finance Committee of the Verkhovna  Ada, law enforcement officers, crypto market players, and Ernst & Young and USAID Financial Sector Reform are consulting on the draft.

After the draft bill is written, it must be approved by the NBU, making its own adjustments if necessary. Currently, the regulator has not yet received a draft law for processing, said Deputy Head of the NBU Oleksiy Shaban. The document may be submitted to parliament for consideration in the summer, and approved by the end of the year, said Yaroslav Zheleznyak, First Deputy Chairman of the Finance Committee of the Verkhovna Rada. The authors of the draft law took key approaches, structure and definitions from the regulation on the regulation of crypto-assets (Markets in Crypto-assets) recently approved by the European Parliament. Therefore, the document will be adapted to European standards, Zheleznyak says. The draft law will fix the most detailed formulations of terms and concepts about virtual assets and describe the mechanism for their taxation. The new version of the law will be more thorough and detailed than the previous one (adopted at the end of 2021), and market regulation will be transferred from the Ministry of Digital Economy to the National Commission for the Regulation of Financial Institutions and Funds.

The draft law will most likely tax cryptocurrencies after their withdrawal into fiat currencies, while processes within crypto exchanges and capital gains after the sale of crypto assets will not be subject to taxation, says Zheleznyak.

We remind you:

On March 15, 2022, the president signed the law "On Virtual Assets" adopted the day before , however, despite the expectations of Ukrainian crypto market players, the document never came into force.

To make this possible, changes were needed to the Tax and Civil Codes of Ukraine – this would clearly define the mechanism for taxation of virtual assets, including cryptocurrencies.

However, at the beginning of the full-scale war, the issue of amendments to the Tax Code was postponed, and later the law in its first version was abandoned.

At the end of March 2022, the European Union began work on uniform rules for regulating cryptoassets.

Finally, on April 20, the European Parliament approved the world's first collection of requirements for cryptoassets, MiSA.

Given that legislative regulation of the virtual asset market is a prerequisite for European integration, Ukraine should synchronize its legislation with European standards.

The EU will finally adopt MiCA only in July, after which the Ukrainian parliament will be able to approve the draft law on virtual assets, and then - amendments to the Tax and Civil Codes.

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