Good day everyone,
I hope you are all well and having an excellent week, welcome to CryptoGod-1’s blog on all things crypto. In a recent report by the U.N. it was discovered that crypto ownership is highest amongst emerging and developing nations. The most popular of the nations was Ukraine, where they are looking to impose new E.U. inspired regulations before the end of 2023.
United Nations Report
The report, which took note of nations in terms of digital asset ownership in 2021, was released in late 2022 and showed that Ukraine was in fact the nation with the most residents who owned digital assets within emerging nations. They were closely followed by Russia, and then Venezuela and Singapore. The report looked at all the developing nations, and while the U.N. itself came out and called for a halt on the development of crypto in emerging nations, it did not stop the citizens loading up on them.
It is of most interest to note that Ukraine was the most popular nation in terms of acquiring crypto back then. Of course this was prior to the war in Ukraine breaking out, with Russia invading in March 2022, but the nation is still trotting along and fighting for their freedom on a daily basis. It was interesting to note that the U.N. specified that 15 of the top 20 economies when it comes to the share of the population that owns cryptocurrencies were from developing and emerging nations.
Ukraine Regulations
Given the popularity of crypto among its citizens, Ukraine has pushed ahead in its bid to implement regulations for crypto within the nation. Inspired by the E.U Markets in Crypto-Assets (MiCA) laws which came into effect in Europe during 2022, Ukraine is now pushing to have its own version in place before the end of 2023.
The National Commission on Securities and the Stock Market, the Ministry of Digital Finance, the National Bank of Ukraine (the central bank), and MPs are currently working on making this a reality. Earlier in April 2023 politicans revealed they were inspired by the MiCA regulations and would look to create their own, similar version.
According to media reports it is Verkhovna Rada’s Financial Committee who are working on the new proposals. They will be working alongside law enforcement to ensure the laws are just and workable, along with getting advice from several major players within the crypto market. However, it is the central bank in Ukraine which will have the final saw on the bill.
They are hoping to submit the draft bill into parliament during the summer session, with the aim of having it adopted into law before the end of the year. The document will be adapted to meet European standards, and will be more thorough and detailed than the previous crypto law passed in 2021.
It was also added that the bill would focus on the taxation of crypto. It will likely impose a tax on gains made from crypto after traders have converted their coins into fiat currency. This would therefore introduce a capital gains tax on crypto-to-fiat sales only, while crypto-to-crypto trades would not be subject to any taxation.
While it is great that Ukraine and so many other emerging nations have taken to crypto, it should also be done with some caution. As we saw in 2022, the crash impacted many and I am certain the developing nations were hit just as hard. As for Ukraine, imposing a bill to regulate and tax crypto is not necssarily a bad thing, once it is done in a fair and constructive manner. It will be interesting to watch how this develops and plays out over the coming months, especially if the war can come to and end.
Have a great day.
Peace. CryptoGod-1.
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