Times magazine recently announced that 2020 is the worthiest year in world history.
For Eurofast, 2020 brought a number of challenges as well as plenty of opportunities.
Throughout the past year, Ukraine officially launched the land market, the pilot project of E-residency, took a step forward in establishing the Bureau of Economic Security, introduced the new Anti-BEPS Law with the CFC rules and made changes in its tax system with the AML Law. Such actions inevitably bring more transparency and clarity to the Ukrainian market. Despite the above, there is still a lot to be done.
The Ministry of Digital Transformation recently announced its intentions to make cryptocurrencies legal in Ukraine. On December 2nd, the Ukrainian parliament adopted the Draft Law on Virtual Assets. The Draft Law proposes to define the basic terms related to “virtual currency” (“cryptocurrency”), “virtual assets”, “ICO / ITO”, “mining”, “smart contract” and “token”. The goal of this initiative is to create clear conditions for businesses in the field of virtual assets and virtual currencies.
According to the Ministry of Digital Transformation, the Cryptocurrency status will be 100% legal by 2021 in two stages:
- 2018-2019 – to define and determine the legal status of cryptocurrency which has been effected;
- 2020-2021 – to recognize providers of wallets-custodians of virtual currencies as subjects of primary financial monitoring; to develop special legislative acts on the regulation and use of virtual assets, smart contracts and tokens.
Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.
For further information on how you or your business can prepare for the new standards or to discuss potential actions, please contact our Kyiv Tax and Legal Department at kyiv@eurofast.eu
Oleksii Maistrenko,
Tax and Legal Associate
Eurofast Ukraine
alex.maistrenko@eurofast.eu