Overregulation Prevents Crypto Development

Overregulation Prevents Crypto Development, Says Ukrainian Central Bank Official

Overregulation in Ukraine is reportedly preventing the cryptocurrency industry from growing in the nation. An official of the Ukrainian central bank (NBU) told this to some local crypto news outlet LetKnow Tuesday, Jan. 8.

Mikhail Vidyakin, the director of the strategy and reform department of NBU, considers there are too many institutions in the nation that have the authority to govern cryptocurrencies.

In order to foster the evolution of the industry, the amount of its possible regulators has to be decreased, Vidyakin claims.

Moreover, Vidyakin considers that Ukraine requires a more clear regulatory framework for crypto, along with better definitions for the industry. The NBU official further commented that he supports regulations that allow the marketplace to grow and that the banks ought to be open to interacting with the fintech sector.

As BMI reported in October this past year, the Economic Development and Trade Ministry of Ukraine has already initiated a nation policy for the classification and legalization of crypto-related pursuits. On the other hand, the true legal framework has not yet been released by the government.

In September 2018, the parliament of Ukraine proposed a draft bill to cryptocurrency taxation that provided to present a five percent tax for individuals and legal entities running operations with virtual assets. The draft bill also offered to increase the crypto-related profit tax rate to 18 per cent for businesses, starting on Jan. 1, 2024.

At the meanwhile, a working class within the Ukrainian Ministry of Finance is talking guidelines for crypto taxation.

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