Ukraine and Russia have submitted draft laws to provide alternative ways of regulating cryptocurrencies. A law that defines digital currency as an asset, body of trade and store of value has been registered in the parliament of Ukraine, in Kiev. The bill is also supported by both congressmen and delegates of the industry. In Moscow, on the other hand, the directors of leading Russian initiatives have proposed their own variant of the bill on digital financial assets which includes the legal expression ‘cryptocurrency’ separates it from tokens.
New Crypto Law Filed in the Ukrainian Parliament
In the Verkhovna Rada of Ukraine, the bill draft has been approved by 23 members of the parliament. The announcement of the new law has been made in a Crypto Conference in Kiev by Ukranian Member of the Parliament, Alexei Mushak.
As reported by Forklog, the legal report outlines the term ‘virtual assets’ and differentiates between cryptocurrencies and tokens. Cryptocurrency is listed as a virtual asset which can be used as trades and also can store value. Tokenized assets, however, guarantee property or other benefits to their owners that resemble the necessities of an issuer.
According to the proposal back in August, crypto incomes and interests of both individual as well as corporate entities will only demand 5% tax until the year 2024. Earlier this month, an Ukrainian deputy-finance minister has proposed to the citizens to pay 19.5% income tax on their crypto profits.
Since last October, altogether three drafts have been submitted. However, so far there has been no further improvement reported – except, their approval.
Another significant viewpoint of the new bill is to reducing the government’s responsibilities regarding the neglect of crypto-to-crypto exchange. The state should be only responsible for regulating the transactions which include the trade of cryptocurrency to fiat money – thinks the writers of the bill.
Alternative Bill on Digital Assets Suggested in Russia
A new draft bill on digital assets, as an option to the one already developed by the officials, has been introduced. According to Forklog, the bill has been written by the Russian Union of Industrialists and Entrepreneurs (RUIE) awards digital currencies a ‘special status’, the director of the interdepartmental group assessing cryptocurrencies, Elina Sidorenko.
The report categorizes digital assets into three groups: digital tokens, security tokens, and cryptocurrencies. As stated by Sidorenko, cryptocurrencies will be regulated by the new bill and also the Central Bank of Russia will be in charge to issue permits to providers of trade services.
The token issuers, companies, who reaching the funds via ICOs, will not be obligated to apply for permits from Centrobank. The tokens will be considered as an evidence of civil law agreement settled between ICOs and the investors.
The aforementioned draft is still being discussed and will be ready to introduce with the regulatory agencies in October.
Russia’s top officials such as Vladimir Potanin, the president of the mining and metallurgical company Nornickel, Mikhail Oseevsky, the head of Rostelecom as well as Viktor Vekselberg, the president of the Skolovo Fund, are working together to establishing the law.
These three bills created to regulate the crypto area were listed in May, in Duma. Their content has been synchronized by delegates on the lower house of the Russian parliament and next month, the renewed legislation will be announced for the public debate.
Author: Berna Bayindir
Photo Credits: Dominik Scröder from Unsplash and Twemoji – Canva