The government of Ukraine has currencies of a state Directive for the legalization of Crypto and for the precise administration and Monitoring of the Fintech sector as part of a new public policy of the Ministry of economic development and trade started. The process can take up to three years, but in the end, companies that rely on digital assets would be a legal part of the market of the country.
According to the Ministry’s Website published a press release, the Initiative aims to establish at parliamentary level, the key terms related to virtual assets, such as a “virtual currency”, “virtual assets”, “ICO / ITO”, “Mining”, “Smart Contract”, “Token”.
In Ukraine there is a legal Dilemma in the case of projects related to crypto-currencies and their legal status, the taxation of transactions and the possibility of Smart Contracts. Smart Contracts an agreement between two parties or individuals in the Form of a computer language or Code. Smart Contracts are working on the Blockchain, the digital Ledger (cash book), in the transactions of a Cryptocurrency step-by-step and publicly documented. Smart Contracts lines of code that are stored in a Blockchain, and the contract is fulfilled, if defined rules are met. The contracts are based on program code, with characteristics as they were defined by the parties involved.
A two-step process
The new regulatory policy is implemented in two steps. The constitutional status of crypto-currencies, Exchanges, and other Stakeholders that manage digital Assets, must be defined in 2018 and 2019. Thereafter, the government of Ukraine will examine the business field, in order to identify Trends and significant concerns, to satisfactory, to propose measures for the regulation of the entire sector.
Further, it is stated in the press release:
The state, in turn, taxes and foreign exchange receipts. He has no ability in this area of financial monitoring, as there is a lack of statistical information. As a result, foreign investment and opportunities are not lost to the creation of new, high-paid jobs.
More you write, the next Phase, 2020-2021, the identification of suppliers of Cryptocurrency Wallets and currency platforms as “a subject of primary financial monitoring”. This Status is assigned to the establishment from financial institutions such as financial banks and insurance companies.
In other words, in the second Phase, 2020-2021, the aim is the identification of providers of virtual currency platforms of institutions of primary financial control. This also includes the expansion of specific legal rules governing the use of virtual assets, Smart Contracts, and Token (a digital unit of account within a distributed directory of data sets in the Form of data with cryptographic protection, which can be used for the certification of the existence of the Right to civil objects, and debt ratios) that can be included in the ICO/ITO.
According to Bitcoin.com the government of Ukraine has expressed their Confidence that the application of its underlying principle of crypto make it possible, to take access to trade services and more money would bring through a standardized Token sales. The Ministry pointed out that these companies are facing due to the legal dilemma with many challenges, while the industry dominates a large part of the shadow economy.
In the Following it is:
The market participants will have the opportunity to take Bank services, officially attract foreign investors to operate ICO / ITO as a Ukrainian company, Smart Contracts complete and barter for the exchange of Goods and services in virtual currencies.
The press release also stated that the government of Ukraine will be able to receive funds for the budget, as well as the inflow of foreign currency in Ukraine. The implementation of this measure will also create new high-paying employment opportunities and accurate analysis data on the area of virtual currencies deliver.
This measure will also help to promote the growth of the digital economy, E-Commerce and innovative projects. This will also make it possible to agree to the Ukrainian legislation in the field of virtual currencies with EU law. The Ministry of economic development, the aim is to present the highest quality law in the field of virtual assets and currencies in accordance with the strictest modern Standards. The Ministry has invited experts in the field of virtual currencies, entrepreneurs, and other interested groups to discuss this concept.
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This article was from English into German:
Senior IT Consultant and Crypto Enthusiast always in search of interesting news.