- On June 14, the Ukrainian regulator presented a new bill
- It amends a number of regulations and the Tax Code
- In theory, it could serve as a foundation for a full-fledged regulatory framework
- But the bill is complicated and little understood by the average investor
- Our friends at Juscutum help us figure it out
When last week, On June 14, the Securities and Stock Market Commission (SSMSC) introduced the long-awaited cryptocurrency bill. It is intended to make certain amendments to the Tax Code of Ukraine and the bill “On Virtual Assets.”
Basic points and clarification from Juscutum
Factually, this initiative lays the foundation for the regulatory framework in the field of digital assets. And if it moves forward, with all the consequent changes in the current legislation, cryptocurrency in Ukraine may obtain legal status.
The bill is based on the EU regulation MiCA.. Representatives of the law firm Juscutum have already covered this set of rules and the changes in the legal field to which it will lead.</nbsp;
The draft law outlines the regulatory mechanism, the list of legal entities’ obligations, lays the concept of taxation and certain levers to protect investors’ interests.</nbsp;
But also note that the SEC has taken on the role of the pioneer. The bill is quite lengthy and all-encompassing, and it’s difficult to make sense of it at first glance.
Juscutum lawyers attended the advisory board meeting where the bill was introduced. And they have prepared a separate document (download), which touches on all the main points of the regulation.
There you will find, among other things, answers to the questions, what will be the tax rate and on whom it will fall the obligation.. In simple words, but just as importantly, informative and to the point.
If you find the video format easier to understand, below you can find details about the live stream with Juscutum’s representative Peter Bilyk.
An inside look
We also note that one of our good friends Vadim Grusha, CEO of the crypto-neobank Trustee Plus, was present at the meeting.. Especially for Incrypted, he shared his thoughts about the bill.
- First impressions
“The document is complex and large, there was almost no time to read it.. So we drew information from the presentation for the most part.”
- On the benefits of implementing the bill for business
“I tried to find some, but could not identify anything like that.. The tax burden on the company is much higher than in the EU. And the requirements are stricter.. That said, the investment climate in Europe is more attractive.”
- On the positioning of the bill
“We have been made clear that we will not compete with other countries through the tax rate. The question, then, has not been answered.. I got the impression that the bill was not created to attract companies. Or the authors don’t have an understanding of what might be of interest to business.”
- On timing and public response
“There are only two weeks for discussion, until the end of June.. By the end of August – registration in the parliament, so that in September the bill could be considered by the relevant committee. The bill is expected to pass before the end of the year. And by January 1, 2025, it will already be in full force.”
- On relevance
“EU countries have been registering cryptocompanies for about three years, offering a clear working environment with a favorable tax rate.. Our initiatives now look not just unpromising, but outdated by at least an entire era.”
Vadim Grusha specifically for Incrypted:
Stream with Juscutum
With the above, it is already clear that the bill is at least controversial. Many points in it are not completely clear.
Incrypted will try to understand it in detail with the help of Peter Bilyk, head of the Technology and Investment practice of the Juscutum law firm.. Our guest has 10 years of legal experience. At the same time he serves as Ukraine’s ambassador to the European LegalTech Association.</nbsp;
In the Stream we will discuss:
- the new bill and exactly what amendments to the regulatory framework it proposes;
- the prospects of cryptocurrency companies if the bill is approved;
- will this regulatory act be the last and crucial step of Ukraine to legalize cryptocurrencies;
- what you should know and how to behave in the new reality;
- and what points investors in cryptocurrency should pay attention to.</nbsp;
The broadcast starts tomorrow at 18:00 Kiev time. Streaming will take place, as always, on Incrypted’s YouTube channel. Submit your questions in the form, and we will consider the most interesting ones in the discussion. Come, it will be useful and interesting.