Draft Laws on Regulating Digital Currencies Are Presented in Russian and Ukraine

Draft Laws on Regulating Digital Currencies Are Presented in Russian and Ukraine

September 16, 2018 Off By dan saada

Bills that contain alternative methods to regulate cryptocurrencies in Russia and Ukraine are recently introduced. A bill about classifying digital currency as an asset, a store of value, and a unit of exchange have been drafted and filed in the Rada in Kiev. The industry’s deputies and representatives both support the bill.

In Moscow, the leading enterprises of Russia have their managers drafting their own version of the bill about cryptocurrency. The law includes “cryptocurrency” as a legal term and establishes a distinction between crypto and tokens. Going back to new cryptocurrency bills filed in Rada, it means to separate the crypto-to-crypto trade out the government regulation’s reach.

Twenty-three members of Ukrainian Verkhovna Rada signed the draft. Reports also say they are prepared to cooperate with industry representatives. The filing of the crypto law was announced by Alexei Mushak, Ukrainian Member of the Parliament, during a cryptocurrency that happened in Kiev. The bill also defines the term “virtual assets,” particularly crypto and tokens.

According to the legal document, cryptocurrency is a virtual asset capable of storing value and as a means of exchange. On the other hand, tokenized assets are those capable of certifying a property or some other rights of the holder. The certification corresponds to the user’s obligations. It’s also been reported before that the sponsors of the bill aim to present a preferential tax regime.

The proposal stated that the crypto profits and incomes of both corporate entities and private individuals would be under five percent tax until 2014. On that note, the deputy finance minister of Ukraine advised Ukrainians to pay a 19.5% income tax on cryptocurrency incomes, earlier this month. It was not the only crypto bill drafted as there were a total of three bills were introduced since last October.

One of the drafts includes a proposition of amending the tax code of the country, changing it, so it integrates crypto taxation. There has not been any significant progress to this bill’s adoption that has been reported so far. That is even though the bill already passed a number of relevant parliament committees.

As for the newly drafted law proposed in Russia, it was an alternative to a bill the authorities have already developed. The Russian Union of Industrialists and Entrepreneurs (RUIE) is the author behind the bill. The law is meant to grant a “special status” to cryptocurrencies. The new law will regulate cryptocurrencies in Russia with the Central Bank of Russia to adopt the rules and issue licenses.

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