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Blockchain & Cryptocurrency
November 2018 www.intellinews.com I Page 14
The state, in turn, lacks taxes and foreign exchange earnings. It has no opportunity to carry out financial monitoring in this area due to the lack of statistical information. As a result, foreign investments and opportunities for creating new high-paying jobs are being lost.”
The legalization process involves a two-stage plan that will begin this year and end three years from now. The first stage is oriented to a theoretical aspect, clarifying concepts and monitoring activities, while the second stage would allow
the legal elements necessary to achieve effective legalization of the cryptocurrencies.
“Implementation of the Concept is foreseen for the period up to 2021 in two stages.
At the first stage in 2018-2019, the definition of the legal status of cryptography is foreseen; recognition of business entities providing cyber exchange services to currency currencies (traditional currencies) and vice versa; monitoring and analysis of problems and trends in the development of the market for virtual assets and virtual currencies in
order to develop proposals for the improvement of regulatory policy.
In the second stage, 2020-2021, the recognition of providers of virtual currency custodians (persons providing services to protect private cryptographic keys on behalf of their clients for the storage and transfer of virtual currencies) is foreseen by entities of initial financial monitoring; development of special legislative acts on the regulation of the use of virtual assets, smart contracts and tokens (digital unit of accounting within a distributed register of records
in the form of data that has cryptographic protection that can be used to certify the existence of rights
to civil rights objects and obligations relationship), holding ICO / ITO.”
The decision of the Ukrainian government is of particular importance for the crypto ecosystem as it allows the harmonization of Ukrainian legislation with the progress made in this area by other countries within the European Union. Now, Ukraine is set to become an example in blockchain adoption and innovations regarding technological legislation.
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