IMF Urges Ukraine To Finalize Crypto Legislation

IMF Urges Ukraine To Finalize Crypto Legislation

The Deputy Minister of Digital Transformation for IT industry development in Ukraine revealed that the International Monetary Fund (IMF) has urged the country to finalize its crypto legislation.

He stressed that they needed to work on exploiting the range of opportunities for developing new sectors of the country’s economy in the face of war.

He also added that the crypto sector’s legalization could have a powerful economic impact and generate turnover worth billions of dollars.

Crypto legislation

Alex Bornyakov, the Deputy Minister of Digital Transformation for IT industry development, revealed the IMF’s advice via a Facebook post last week.

He stated that as per the suggestion of the International Monetary Fund, the country should have its virtual asset legislation updated by the end of this year.

He disclosed that the relevant condition had been mentioned in the Economic and Financial Policy Memorandum that had been signed between the IMF and Ukraine.

The Deputy Minister said that there are risks to the efficiency of monetary transmission and price stability due to the lack of new regulations for the crypto industry.

The Ukrainian official said that even during the war, they need to continue leveraging the opportunities available and work on developing new areas of the economy.

The impact

According to the officials, legalizing the crypto sector could have a huge and positive impact on the economy due to the turnover it will generate.

He emphasized the need for introducing state regulation for the crypto assets market and also asserted that a considerable amount of legislative work had already been done.

President Volodymyr Zelenskyy signed a law named ‘On Virtual Assets’ back in March 2022 that had been aimed at regulating the crypto industry in Ukraine.

Last year in April, a member of Ukraine’s National Securities and Stock Market Commission, Yuri Boyko, disclosed that the country intended to implement the crypto market rules the European Parliament had approved.

The bills

According to Bornyakov, two bills have been introduced in the Ukrainian parliament to regulate the circulation of virtual assets.

The National Securities and Stock Market Commission had introduced Bill No. 10225 and on November 7th, 2023, the Ukrainian parliament accepted it for consideration.

The bill in question dictates rules for taxing crypto assets. The second bill was brought forward by the Ministry of Digital and Crypto Business Representatives.

The Bill No. 10225-1 also comes with rules for taxing virtual assets and on November 18th, 2023, it was accepted for consideration by the parliament.

The deputy minister said that defining the principles of taxation and regulation of virtual assets as quickly as possible is essential.

He stated that doing so would not only help strengthen the economy of Ukraine but also help the country establish trust with international partners.