Ukraine’s Economic Development and Trade Ministry has recently launched a state policy to legalize cryptocurrencies in the country, according to state information outlet Ukrinform.

The official press release states that the purpose of the policy is to “create understandable conditions for conducting activities in the field of virtual assets and virtual currencies”, and promote cryptocurrency adoption in the country.

Ukraine is already one of the most progressive countries in the world when it comes to blockchain and cryptocurrencies but right now, digital currencies are not recognized by the state and mostly operate in an unregulated environment. With this new move, the country will eventually legalize the cryptocurrencies and even ICOs.

To start off, the ministry has established key legal terms including virtual currency for cryptocurrencies, virtual assets for ICO tokens and other aspects like mining and smart contracts. The government organization will now look to build on these definitions.

According to the report, the regulation will be implemented in the country in two stages and will be completed by 2021. The country has also initiated a taxation bill in the parliament that will see a 5% tax imposed on individuals and entities with crypto holdings. For other cryptocurrency related businesses, the tax is being reported as high as 18%.

The National Bank of Ukraine is also proposing a Central Bank Digital Currency that can be used for fiat money transfers within in the country.

 

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