Wed, December 04, 2024

Ukraine’s Ministry of Digital Transformation and Crypto

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The current President of Ukraine, Volodymir Zelensky, country’s government along with parliament, are working hard to make the country more crypto-friendly. Last week, the country’s Ministry of Digital Transformation published a manifesto connected with this topic.

This manifesto is helpful as this ministry is responsible for the digitization of Ukraine’s economy. Consequently, the information provided in this document can be used to learn more about the ministry’s plans.

Moreover, this document includes the main principles of the country’s approach to crypto-assets. According to the manifesto, one of the main goals for the government is to encourage is the formation and implementation of state policy in this field. Also, Ukraine’s government is keen to develop the digital economy, digital innovation, etc.

It is worth mentioning that the ministry responsible for digitation has no intention to impose rules regarding crypto mining. The industry operates based on blockchain consensus rules. It means that the ministry has no plan to change the status quo. Thus, the industry will retain autonomy.

Additionally, the ministry will contribute to the development as well as market introduction of distributed ledgers. Also, officials will create regulatory sandboxes for the blockchain industry.

Also, the Ukrainian government plans to adopt the best practices when it comes to taxing crypto-related income.

Crypto regulations and UkraineUkraine and crypto industry

In December 2019, Ukraine adopted the law concerning the anti-money laundering in accordance with the latest Financial Actions Task Force recommendations.

Interestingly, Ukrainian anti-money laundering law includes crypto as an asset that requires monitoring for the first time in the country’s history. The State Financial Monitoring Service will track transactions exceeding $1,200.

Ukraine has the potential to develop the crypto industry. Officials are ready to support the crypto-related companies. This way it will be easier to develop the industry per country’s laws and regulations. Ukraine is one of the largest countries in Europe and it won’t be hard to attract crypto investors.

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