CRYPTOCURRENCY IN UKRAINE. GENERAL PROVISIONS OF ACTIVITY LEGALIZATION

The legalization of cryptocurrency in Ukraine and activities related to the latter have been actively discussed for the past few years. Among other things, this became the reason for the adoption of the relevant legislative framework in Ukraine, in particular, the Law of Ukraine "On Virtual Assets" (hereinafter - the Law).

At the same time, we draw your attention to the fact that to date, the relevant Law has not entered into force and is awaiting the introduction of relevant changes to the Tax Code of Ukraine, but it already provides an understanding of the basic principles, principles and algorithms for conducting further activities.

First of all, the Law provides us with the definition of cryptocurrency in Ukraine and its legal nature. Thus, according to the legislation of Ukraine, cryptocurrency is a virtual asset, which is an intangible good, has its own value and is expressed by a set of data in electronic form. In simple words, "virtual asset" in Ukraine can be identified with "information". Thus, the virtual asset (hereinafter - VA) is not a means of payment and, as of now, does not allow settlement on the territory of Ukraine without prior conversion into the national currency - the hryvnia.

Regulators that will license, control and monitor the activities of entities in the field of virtual assets are also provided for, including the National Bank of Ukraine and the National Securities and Stock Market Commission. They, in turn, set a number of requirements for candidates to carry out the specified activity, starting with requirements for authorized capital, ending with requirements for owners, managers and accountants of business entities

Already now, we can understand exactly which services related to the turnover of virtual assets, business entities will be able to implement in their activities. These include, in particular:

• storage or administration of VA or VA keys;
• VA exchange;
• VA transfer;
• intermediary services related to VA.

Thus, at the legislative level, all possible types of activities with virtual assets, which Ukrainian business will be able to use in the near future, are provided for.

Our specialists constantly track and monitor the work of the Verkhovna Rada of Ukraine regarding the introduction of appropriate changes to the tax system of Ukraine in order to introduce relevant services with cryptocurrency on the territory of our state.

Special attention should be paid to the expected taxation of cryptocurrency in Ukraine, which makes our state the center of the most favorable climate for conducting the above-mentioned activities not only on the territory of Europe, but also in the world as a whole. So, legal entities, natural persons-entrepreneurs and natural persons will be able to declare income from activities with cryptocurrency and tax such income at the level of 5%, which makes conducting such activities unprecedentedly profitable on the territory of Ukraine from among other world countries, and provides an opportunity to attract to Ukraine of investments and additional capital from external business entities and private individuals.

Taking into account the above, the specialists of Prykhodko and Partners in the field of cryptoassets, corporate law and licensing will help you take your place as one of the first in this progressive and promising market of cryptocurrency services.