The Head of the Verkhovna Rada Committee on Financial Policy and Banking, member of the Oleg Lyashko’s Radical Party, Serhiy Rybalka introduced a draft law «On stimulating the market of crypto-currencies and their derivatives in Ukraine.» The politician expanded on the main provisions of this draft legislation in his blog with the «Observer». 

According to the MP, the key emphasis of the proposed document is to stimulate rather than only regulate the market.

According to the bill the crypto currency will acquire the status of a financial asset.

«As a matter of fact, in Ukraine, the legislation that is the most developed and the most adapted for the introduction of the crypto currency into the legal field is the one pertaining to financial services. All we have to do is to recognize the crypto currency as a financial asset for the purposes of legal regulation. On the other hand the Ukrainian legislation on issues and circulation of derivatives is sufficiently developed. It infers that the National Financial Services Commission can be assigned the role of the crypto-currency market regulator for the participants of and operations on the crypto-currency market and the National Securities and Stock Market Commission as the regulator that would deal mostly with derivatives,» offered Mr. Rybalka.

According to the draft law, crypto-exchanges will receive the status of financial institutions, become subject to licensing and held responsible for any possible breaches of licensing terms and conditions. «It is important to bear in mind that before receiving all the financial services from exchanges, the user will have to confirm that he accepts all the risks,» so Mr. Rybalka.

Crypto-investors (both entities and individuals) will have to demonstrate the necessary experience and qualifications. «The introduction of this category at the first stage will completely solve the issue of protecting investors (consumers) by raising awareness of possible risks among the professional market participants and protect the public from possible abuses,» S. Rybalka believes.

We are confident that the right of becoming a «miner» should be awarded to any individual or entrepreneur. Such person will be entitled to dispose of the extracted units at his or her own discretion without any restrictions. However, it is proposed to introduce liability for illegal «mining» that is by using the capacities of third parties without their prior consent.

The market will be stimulated by establishing preferential electricity tariffs (preferential industrial tariffs in industrial parks and more preferential than the existing night tariffs for «miners» from the rest of Ukraine), as well as through the unencumbered and dramatically simplified taxation process. Specifically, it is proposed to set a zero tax rate for the purchase of the crypto-currency and introduce a 2% Pension Fund fee if converting it to hryvnias.

The MP stressed that the provisions of the draft law are open for discussion that, according to S. Rybalka, can and should be held in the relevant Verkhovna Rada committee.