Full Scale Adoption: Ukraine Plans To Move Forward With Crypto Legalization

A new official statement is in the daily cryptocurrency news after the topic of regulation spiraled by the Ukrainian government. The government plans to establish regulatory frameworks in order to legalize crypto in the region.

The announcement is also part of an initiative to consider and acknowledge cryptocurrencies like Bitcoin as emerging technologies, released by the Economic Development and Trade Ministry in Ukraine within a new state policy in order to oversee various cryptocurrency-related sectors – put in full effect by the end of 2021.

The plan is to integrate the regulatory frameworks to strictly govern the local cryptocurrency exchange market, and the crypto trading platforms will be required to implement the Know Your Customer (KYC) and Anti-Money Laundering (AML) systems in order to help local authorities monitor the market.

The plans are to delve into the cryptocurrency mining industry as well as smart contract protocols and taxation, all parts of the regulation in the initiative to recognize cryptocurrencies as an asset class and an established industry.

According to one researcher named Denis Zarytsky:

“They aim to determine guidelines for token classification. Additionally, they will be touching upon issues that relate to smart contracts and cryptocurrency mining. Therefore, this work will be ongoing. There will be two separate stages to the implementation of this new state policy. The hope is to have this policy in full effect by 2021. In addition to the new state policy, the government notably has brought in a new taxation bill. This outlines a new 5% tax that is payable by entities and individuals with cryptocurrency holdings.”

Currently, both the opposing and the ruling party of Ukraine are positive on the long-term growth of the cryptocurrency sector and the blockchain technology.