Currency Exchange in Ukraine

Ukraine is among the TOP-10 countries by the number of Bitcoin users. The use of decentralized technologies is planned and partially implemented already at the state level: the e-Auction 3.0, e-Vox, E-Ukraine. Ukraine is also very well developed cryptocurrency community. However, in Ukraine the legal status of cryptocurrencies and relationships arising from their use, is not defined. Despite this, the national Bank of Ukraine is actively studying the experience of other countries with the purpose of settlement of these relations in a European and global context.

In Ukraine, to date, remains unresolved and the issue regarding the taxation of cryptocurrency transactions. Due to the absence of any special rules apply standard rules of taxation.

chronology of the development of bitcoin and the blockchain in Ukraine

November 2016
NBU presented a road map for Cashless Economy with plans to use technology BlockchainBlockchain-platform e-Auction 3.0 — system decentralized online auctions in state institutions at the municipal and provincial levels
December 2016
Ukrainian exchange became the world's first platform where derivatives are traded Bitcoin
November 2014
the NBU has called Bitcoin a money surrogate 6
APR 2015
the NBU revised its stance on Bitcoin and announced plans for cooperation with the Bitcoin Foundation Ukraine
Jun 2015
the Beginning of a dialogue between the NBU and the Bitcoin community
February 2016
the Signed Memorandum on the establishment of E-Vox e-voting on the blockchain Ethereum
March 2016
the Signed Memorandum about the launch of Blockchain-platform e-Auction 3.0 — system decentralized online auctions in state institutions at the municipal and provincial levels

the national Bank of Ukraine (the "NBU") made a statement regarding Bitcoin in November 2014. "In view of the above, the national Bank of Ukraine considers "virtual currency / cryptocurrency" Bitcoin as a money surrogate, which is not providing real value, and cannot be used by individuals and legal entities in Ukraine as a means of payment, because it contradicts the Ukrainian legislation,"— said in a post on the official website of the NBU in Facebook. In addition, the regulator noted that "all risks for the use in the calculation of "virtual currency / cryptocurrency" Bitсoin the responsibility of the member calculations".

a few days Later on the statement of the NBU followed a comment from Bitcoin Foundation Ukraine, in which it was said that the NBU's explanation does not contain a direct prohibition of cryptocurrency, and was criticized approach to the definition of Bitcoin as a money surrogate. "For illegal actions of Bitcoin is not used more often than the currency of any state, including Ukraine",— said in comments. According to its authors, "the need to resolve the legal status of Bitcoin in Ukraine is obvious." So, Bitcoin Foundation Ukraine has proposed to the National Bank of Ukraine to hold consultations with the public regarding the status of cryptocurrency in order to allow the Ukrainians to become world leaders in this field. After a few months the position of the NBU has changed. At the end of April 2015, the Director of the Ukrainian interbank Association of members of EMA payment systems Alexander Karpov said that the national Bank will consider offer of Bitcoin Foundation Ukraine on cooperation and announced a large and exciting innovations in the next two to three months or until the end of the year.

In June 2015 was held the meeting of Commission on payments of physical persons of the Public Council under the National Bank of Ukraine, which including been reviewed and the project of Bitcoin development in Ukraine, presented one of osnovatelej of Directors of Bitcoin Foundation Ukraine, founder of KUNA Bitcoin Agency and the Embassy of Bitcoin Mikhail Chobanyan. The meeting was attended by numerous representatives of the NBU, including the Director of the payment systems Department of the NBU Natalia Lapko. Thus, the beginning of a dialogue between the National Bank and representatives of the bitcoin community was laid. During a meeting of the Commission Natalia Lapko noted that Bitcoin is a tool for performing money transfer. As banks operate under license of the National Bank of Ukraine, the cryptocurrency enters the sphere of regulation of the NBU. In addition, the representative of the Commission drew attention to the need for considerable effort to build understanding, what is Bitcoin, bitcoin mining and other concepts that are introduced in life due to the spread of cryptocurrency.

In September 2015 at the International conference Bitcoin Conference Kiev 2015 Natalia Lapko confirmed that the NBU for several months engaged in a dialogue with the bitcoin community. She also noted that the main trend is the surge of interest in the use of virtual currencies. In addition, Lapko assured the audience that she is impressed with the development of new technologies in Ukraine. After this Lapko has promised that the NBU will continue to study the experience of other countries with the aim of resolving the issue of virtual currencies in the European and global context.

In February of 2016 a group of volunteers signed the Memorandum on the establishment of E-vox — electronic system of holding ballots on the basis of the Ethereum blockchain. E-vox system that allows voting for any purpose, including election of deputies to local councils, Parliament. Also with the system can hold electronic referenda, plebiscites, and more.

Quite interesting was March 2016. Then a Memorandum was signed on the launch of blockchain-platform e-Auction 3.0 — system decentralized online auctions in state institutions at the municipal and regional levels. e-Auction should be the world's first example of the use of government of a decentralized, horizontal system for privatization and lease of state property, creation of licenses.200 is Also in March on the Blockchain Conference Kiev presented the concept of e-government portal E-Ukraine. The system should be built based on the technology of the Blockchain and a distributed platform should become a place of interaction between citizens, business and government.

In November of 2016, it became known that the NBU introduced the approved roadmap Cashless Economy, in which first spelled out the official plans of the regulator on the use of Blockchain technology in Ukraine. In accordance with the road map in the development of PS "Space" will happen "the evolution of e-money" as a cashless payment tool (based on the Blockchain technology), the Issuer of which is the Bank". Thus as expected the effect is called "acquiring cheaper" (alternative to card payments)

In December 2016, the Ukrainian exchange became the world's first platform where derivatives are traded for money. Ukraine has not developed an approach to the regulation of cryptocurrency activity and the legal status of digital currencies. And the existing explanation (letter) from the NBU in 2014, which the regulator has defined the cryptocurrency as a substitute for money, does not have a normative character and in principle is not tenable.

Despite this, the appeal court of Kyiv in its judgment of 12 October 2016, referring including to the explanation (letter) to the NBU, said that "Bitcoin is not a thing in the framework of the legislation of Ukraine and has no signs of the material world." The court confirmed that the treatment of Bitcoin is not regulated by the normative. Because of case law as such, to emphasize this is not the solution is not necessary.

any additional requirements for cryptocurrency activities and the entities performing it, at the legislative level is not set. No relevant clarification from the regulators

Taxation of cryptocurrency transactions in Ukraine

To cryptocurrency transactions in Ukraine are subject to the standard taxation rules. Thus, the income received in the form of digital currency, are taxed at a standard rate of 18%, and the profit of legal entities depending on the tax system of such person. The issue of taxation of its value-added tax is quite controversial, because cryptocurrency is not defined as a commodity at the legislative level.

At the end of 2016 in Ukraine there have been several definitions of the measures of providing of criminal proceedings, or otherwise associated with cryptocurrency. For example, on 30 January 2015, the investigative judge of the Desnyansky district court in Chernihiv issued a ruling, which the judge granted the investigator's petition granting temporary access to things and documents of the suspect.

during pretrial proceedings, the need arose to obtain information about the movement of funds on Bank cards. One of the reasons for making such determination was the information that the suspect used the Bank card, including to "obtain freely convertible currency for the exchange of cryptocurrency bitcoin". In support of the application investigator has been argued that the suspect is one of the founders of the legal entity created "for the purpose of issue of Bitcoin, the issue and circulation of which on the territory of Ukraine is prohibited in accordance with the law "On the National Bank of Ukraine"".

Ukraine is among the TOP-10 countries by the number of Bitcoin users. The use of decentralized technologies is planned and partially implemented already at the state level: the e-Auction 3.0, e-Vox, E-Ukraine. Ukraine is also very well developed cryptocurrency community. However, in Ukraine the legal status of cryptocurrencies and relationships arising from their use, is not defined. Despite this, the national Bank of Ukraine is actively studying the experience of other countries with the purpose of settlement of these relations in a European and global context.