The Ukrainian National Securities and Stock Market Commission (NKTSBFR) has announced the completion of the development of a new draft law for cryptocurrency taxation guidelines and the update of the “Virtual Assets” law text. The new draft was developed in collaboration with Ernst & Young, with support from the Parliamentary Financial Committee and the Advisory Council, which includes representatives from cryptocurrency exchanges such as Kuna, WhiteBIT, and Binance.

Tax rates on cryptocurrencies were based on models of investment income taxation in Western European countries, according to NKTSBFR member Yuriy Boyko. In the current version of the draft law, the tax rate is set at 18% of investment income, along with a military fee of 1.5%. The tax is payable if the overall financial result of investment asset operations is positive, and the taxpayer holds the acquired assets resulting from these operations for up to 365 days. If these draft laws are accepted by parliament, the National Bank and the NKTSBFR will become the regulatory authorities for the virtual assets market.

According to the updated draft of the Virtual Assets law, such assets can be classified into three categories: electronic money tokens, asset-backed tokens, and other virtual assets. For the public issuance of asset-backed tokens on exchanges, the issuer must be authorized as a legal entity by the NKTSBFR. To obtain authorization, the legal entity must prepare a whitepaper, which effectively serves as an issuance prospectus.

Boyko hopes that the law will be adopted in September and become effective in 2024. If successful, Ukraine will be the first country in Europe to implement the European Union’s regulations on virtual assets (MiCA).