Overregulation in Ukraine has been reported to prevent the crypto currency industry from developing further in the country. This is clear from a comment by an employee of the Ukrainian Central Bank (NBU) to the local crypto news platform LetKnow on Tuesday, 8 January.
Mikhail Vidyakin, director of the strategy and reform department at NBU, believes there are too many institutions in the country that can regulate cryptocurrencies.
LetKnow has emphasized that in Ukraine there are at least three governmental organizations that fall under this definition: the NBU, the Ministry of Finance and the National Securities Commission. To foster industry development, the number of potential regulators must be reduced, according to Vidyakin.
Moreover, Vidyakin believes that Ukraine needs a clearer legal framework for crypto and better definitions for the industry. The NBU staff commented further that it supports regulations that allow for market growth and that banks should be open to interacting with the fintech industry.
As Cointelegraph reported in October last year, the Ministry of Economic Development and Trade in Ukraine has already launched a government policy on the classification and legalization of cryptographic activities. However, the actual legal framework has not yet been introduced by the government.
In September 2018, the Ukrainian Parliament passed a bill on the taxation of cryptocurrencies, which provides for the introduction of a five percent tax for natural and legal persons conducting virtual asset transactions. The bill also proposed raising the crypto-corporate earnings tax rate to 18 percent from January 1, 2024.
A working group in the Ukrainian Ministry of Finance is currently discussing guidelines for crypto taxation.