Russia And Ukraine Both See New Cryptocurrency-Related Bills Drafted For Regulatory Approval
Cryptocurrency-Related Bills to Regulate the Space Presented Both in Ukraine and Russia
New draft laws to regulate virtual currencies have been presented in Ukraine and Russia. In Ukraine, the bill proposes to classify cryptocurrencies as an asset, unit of exchange and store of value. This bill is supported by both deputies in the country and representatives of the industry.
At the same time, in Russia, the draft law makes a difference between cryptocurrencies and tokens. Moreover, it includes for the first time the legal term ‘cryptocurrency.’
The draft law presented in Ukraine leaves crypto-to-crypto trade outside of the scope of government regulation. The information has been announced in Kiev by Alexei Mushak, Ukrainian Member of Parliament.
Cryptocurrencies are differentiated from tokens. The first term is used to describe a virtual asset that can work as a means of payment, exchange and as a store of value. At the same time, tokenized assets allow users to certify property and many other rights.
Moreover, they also want to introduce a preferential tax regime in the space. Profits of private entities would be subject to only 5% tax until 2024. After several drafts introduced in the Radar, there has been no significant progress towards adoption.
An organization that gathers some of the most important enterprises in Russia has decided to propose a new draft law on financial assets. This bill would grant cryptocurrencies a ‘special status.’
According to Elina Sidorenko, head of the interdepartmental group assessing cryptocurrencies, told Forklog that the document divides digital assets in three groups known as digital tokens, security tokens and cryptocurrencies.
As per the report, cryptocurrencies are going to be regulated by the Central Bank of Russia. This institution is in charge of providing licenses to providers of exchange services and other companies in the space.
Moreover, those companies that launch initial coin offerings (ICOs) do not have to apply for licenses from Centro bank. Those issuers of security tokens will have to follow rules that apply to securities in the country.
Nonetheless, the draft is currently being analysed and considered by the regulatory agencies. During October, they will be paying closer attention to them.
There are different countries that are trying to regulate virtual currencies. For example, several countries in the European Union (EU) are requesting the supranational institution to create regulations that apply to all the member states.
Malta, however, is creating a very flexible and clear framework for blockchain and crypto companies to settle their operations in the country.