An official of the National Bank of Ukraine (NBU) said on the LetKnow website on Tuesday, January 8, that excessive regulation in Ukraine impedes the development of a cryptocurrency industry in the country.
Mikhail Vidyakin, the former head of the department of strategy and reforms at the NBU, believes that there are too many institutions in the country that are authorized to regulate cryptocurrency.
LetKnow stressed that at least three governmental organizations in Ukraine fall under this definition: the NBU, the Ministry of Finance and the National Securities Commission. Vidyakin argues that in orderOrder
– automatic application to buy or sell cryptocurrency. Orders are used during trading on the stock exchange to open and close a position. Details to stimulate the development of the crypto-industry in Ukraine, it is necessary to reduce the number of its potential regulators.
Moreover, Vidyakin believes that Ukraine needs a clearer regulatory framework for cryptocurrency, as well as clearer definitions for the industry. The NBU official also noted that he supports the rules that allow the market to grow, and that banks should be open for interaction with the fintech-sector.
In October last year, the Ministry of Economic Development and Trade of Ukraine has already initiated a state policy of classification and legalization of crypto-activities. However, the actual legal framework has not yet been introduced by the government.
In September 2018, the Parliament of Ukraine proposed a bill on the taxation of cryptocurrencies, in which it was proposed to introduce a five percent tax for individuals and legal entities carrying out operations with virtual assets. The bill also proposed to raise the tax rate on profits related to cryptographic protection to 18 percent for businesses starting January 1, 2024.
Editor: Yuliya Soroka