Eternity Law International — News — Legal regulation of operations with cryptocurrencies in Ukraine

Legal regulation of operations with cryptocurrencies in Ukraine

Published:
June 4, 2018

There is a large number of Bitcoin users in Ukraine. On this indicator, it is included in the TOP-10 countries of the world. Legal regulation of operations with cryptocurrencies in Ukraine has many features and pitfalls.

Despite this, Ukraine still does not have the status of a cryptocurrency. The relevant legislation is under development, and the taxation is formed according to the basic rules.

HISTORICAL REFERENCE

The National Bank of Ukraine in November 2014 made an official statement regarding Bitcoin. It argued that the cryptocurrency is a kind of money surrogate, which has no security and cannot be a means of payment.

Based on this document, all risks were borne by users.

The reaction did not keep itself waiting. Bitcoin Foundation Ukraine commented on the reaction of the NBU and indicated that this document does not directly prohibit the use of cryptocurrency.

Moreover, criticism was voiced about the equalization of Bitcoins to money substitutes.

The authors of the commentary maintained that any currency of the world, including the hryvnia, is used for unlawful actions at least as much as the Cryptocurrency.

The comment ended with a wish to create a legal settlement of Bitcoin in the country.

After such correspondence, a proposal was received from Bitcoin Foundation Ukraine, addressed to the National Bank.

The company was ready to advise on the status of the cryptocurrency and help the Ukrainians to work with the payment system. In late April 2015, the NBU expressed its readiness to cooperate.

LEGAL REGULATION

Until now, there are no laws that would regulate the activity of the country’s cryptocurrency. Also, there is no status of digital currencies.

The only existing document that relates to the cryptocurrency is an explanatory letter from the NBU, where the opinion is expressed that bitcoins are a monetary surrogate.

On the one hand, this document does not bear any regulatory framework. On the other hand, it was on him that the Court of Appeal of Ukraine relied on the decision in 2016.

The court noted that Bitcoin is not part of the material world and confirmed that the use of digital money has not been settled in any way.

At the moment, there are no additional requirements for the operation of cryptocurrencies.

TAXATION

Since there is no legal framework that would in any way allocate the cryptocurrency, in this case the standard rules of taxation are applied.

Thus, incomes of individuals obtained in digital currency are taxed at the rate of 18%, and legal entities – on the basis of an individual taxation system.

There is no clear opinion about VAT, since the cryptocurrency is not an official commodity.

JUDICIAL DEFINITIONS

By the end of 2017 there were several cases of definitions relating to criminal proceedings related to cryptocurrency.

For example, in January 2015, a judge of the Desniansky district of the Chernigov court issued a ruling that allowed the investigator to gain access to the suspect’s personal belongings.

The reason for this was the need to study the movement of funds on bank cards.

Interestingly, one of the reasons for this definition was the assumption that the suspect used the cards, including in order to get a “freely convertible currency for the exchange of cryptocurrency bitcoin.”

Also, in the role of the argument, information was provided that the suspect is one of the founders of a legal entity that was engaged in “issuing Bitcoin crypto currency”, which is prohibited by the Law of Ukraine “On the National Bank of Ukraine”.

In order to properly carry out the regulatory procedure, it is worth contacting Eternity Law International for the support of qualified lawyers. To contact the manager, go to the “Contacts” section and call the specified phones.

 

 

You could be interested

Foreign Enterprises Redomiciliation on Cyprus

When enterprise changes its location, it’s known as redomiciliation of companies. Organization changes its official place according to Law norms, while maintaining its status. Under Law, foreign enterprises can move to some state without ceasing to operate in jurisdiction where they were originally approved. When the redomiciliation occurs, the enterprise will have to use the tax...

Difficulties and advantages of going to IPO

Let’s list the main advantages of going public: The amount of cash and long-term capital will increase. It is the attraction of funds that will make it possible to support growth, increase the amount of funds in circulation, make capital investments, increase research and development, refinance, reduce debts, etc. The market value of the company...

Overview of Hong Kong Asset Management License: terms and permissions

For persons and legal entities looking to capture the share of Hong Kong’s exchanges, the SFC is the setter of a regulatory framework, having issued the Ordinance regulating derivative financial contracts (SFO). It refers to all market activities and details each of them. Hong Kong asset management license allows the delivery of a service of...

Crypto license in India

There is no better way for corporations that desire to function in the cryptosphere in the Asian market than to get a crypto license in India. Indian`s market is one of the most promising and allows access to a large number of potential investors and clients. That is why corporations that were the first to...

Crypto license in Italy

Crypto-currencies continue to be actively implemented and expanded in the modern world. A lot of capital-holders are interested in joining the crypto-environment and developing their business in this direction. This is due to the fact that this area is quite productive, profitable, effective and rapidly developing. Italy is one of countries supporting crypto-currencies and trying...

Crypto license in Georgia

Georgia is among the states that have a law regime that make cryptos eligible for multinational dealers. It is essentially an open nation for cryptos thanks to its favourable tax encouragements, liberal laws, and affordable power. Georgia does not have any laws ruling crypto, nevertheless, it is conceivable to acquire a permit for crypto-assets processing...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360