Ukraine is looking to implement a new regulatory framework for cryptocurrencies, local media reports. While the legislation is at the time targeted towards legalizing the sector in order to prevent it from being a gray area tax-wise, the Ukrainian government might also have taken this step to become a regional hub for cryptocurrency adoption.
At the moment, Malta is Europe’s most progressive country when it comes to cryptocurrency and blockchain businesses, providing 0% income tax on crypto gains and regularly introducing legislation that benefits this industry.
Due to its unstable economy, Ukrainians benefit from the sector of cryptocurrencies by storing their savings in digital assets, keeping them safe from the volatility of the country’s national currency. Aware that the government might benefit from taxing crypto enthusiasts and providing a regulatory-friendly environment for businesses, Ukraine is on the road of utilizing everything that the crypto sector has to offer.
The new president and ex-comedian Volodymyr Zelensky will lead the new future of Ukraine in an innovative way. With the help of the Ministry of Digital Transformation, the nation will not only integrate blockchain technology into its economy but accelerate its development as well.
As for cryptocurrencies, the digital asset class will not only be legalized so that it is no longer in a regulative gray area. According to Mikhail Fyodorov, the leader of Ukraine’s digital electoral campaign, the government plans to integrate both sectors in more than just state structures.
The future for disruptive technologies appears bright, as the government receives help from a team of blockchain experts from Switzerland. The initiative is also supported by the country’s non-government organization named ‘Better regulation Delivery Officer’ (BRDO) and a number of entrepreneurs.
There is no information available concerning the specifics of integrating blockchain technology and cryptocurrencies in the country. However, it seems that the initial plans are to completely remove any sort of corruption in Ukraine and to introduce transparency. According to a report by Kyiv Post, the country loses $8.6 billion annually due to corruption and the mismanagement of resources.
In this aspect, blockchain technology would prove itself to be useful to the eastern-European country as it provides a transparent distributed ledger that records everything that occurs in the blockchain network. If Zelensky were to revitalize the Ukrainian economy by significantly decreasing corruption and utilizing budgetary resources to areas that require financing the most, he would benefit the most from blockchain and cryptocurrencies.
The ongoing approach to the sectors may appear as another chance to tax crypto enthusiasts. However, the new regulatory framework may become useful in establishing a clear and friendly regulatory environment where companies can legally conduct their business. Furthermore, other countries may also follow suit if the initiative bears fruit.