The Ministry of Digital Transformation has announced the conditions under which Ukrainians can conduct cryptocurrency transactions on foreign crypto exchanges

The adoption of the law on virtual assets will allow the resumption of operations with non-cash hryvnia on foreign cryptocurrency exchanges, Yulia Parkhomenko, head of the Digital Economy Directorate of the Ministry of Digital Transformation of Ukraine, said in a Facebook post.

According to her, the Ukrainian cryptocurrency market is currently stagnating due to the lack of proper government regulation.

The adoption of the law «On Virtual Assets» adopted in 2021 has been postponed until the taxation of cryptocurrency transactions is approved. In addition, the text of the regulatory act itself has been updated to reflect the provisions of the European MiCA regulation. The new version was submitted to the Verkhovna Rada of Ukraine on November 7.

Along with it, the National Securities and Stock Market Commission (NSSMC) presented a tax bill proposing a rate of 18%.

For its part, the Ministry of Digital Transformation presented a draft alternative law that envisages a gradual increase in the rate for individuals and exemption of legal entities from VAT, except for transactions with tokenized assets.

«We are faced with the task of adopting the legislation „On VA“ as soon as possible to restore the functioning of fiat gateways with virtual asset service providers registered outside Ukraine for the full-fledged work of market participants,» Parkhomenko said.

Among the agency’s proposals is the creation of an innovation zone for testing digital products, which can be used for three years without prior registration.

The official emphasized that the implementation of all the points of their bill will strengthen Ukraine’s competitiveness in the global crypto market.

As a reminder, on March 16, 2022, PrivatBank temporarily banned its Ukrainian clients from depositing hryvnia on cryptocurrency exchanges. This restriction is also related to the NBU’s decision and is valid for the entire period of martial law. At the same time, another Ukrainian bank, Monobank, reported that their cross-border payment service was facing problems. However, no difficulties were observed with hryvnia transactions within Ukraine.

Last year, at the end of April, the National Bank of Ukraine (NBU) restricted cryptocurrency purchases to UAH 100,000 per person per month. The goal is to reduce the outflow of capital from Ukraine.