Incrypted Conference 2024: Ministry of Digital Development outlines the future of the cryptosphere in Ukraine
Date: 2024-06-24 Author: Oliver Abernathy Categories: IN WORLD
On June 23, 2024, the Incrypted Conference began in Kyiv, which became part of Ukrainian Blockchain Week. One of the key speakers was Deputy Minister of Digital Transformation of Ukraine Alexander Bornyakov. He shared achievements in the field of digital technologies and the potential of crypto assets in Ukraine, and also spoke about the work on the regulatory framework for the crypto industry.
Bornyakov noted the rapid development of state digital services, emphasizing that Ukraine is among the leaders in the digital sphere thanks to the efforts of many developers. He also mentioned the rapid growth of the country's IT ecosystem, which before the war included 2,100 companies and 2,600 startups, with annual growth of 20-30%. Despite global challenges, the sector continues to develop.
New AI service “Mriya”
A representative of the Ministry of Digital Development announced the launch of a new service in the Diya application using artificial intelligence technologies called Mriya. This product is expected to revolutionize the field of education by bringing together teachers, students, students and their parents. The main goal of the project is to create a personalized educational trajectory for young people, in which AI will play a key role.
Bornyakov noted that Ukraine is among the top 5 countries in the global index of digital asset use. He identified three factors contributing to the rapid development of the industry:
1. Strong crypto community.
2. Search for alternatives to the traditional financial system.
3. Experience gained by Ukrainians in foreign companies.
Development of crypto projects
According to the Ministry of Digital Development, over the past five years, more than 80 crypto projects have been launched in Ukraine, and Ukrainian startups have attracted more than $1 billion in funding. In 2023, citizens of Ukraine earned $850 million from investments in the crypto industry. During the period from June 2022 to July 2023, the volume of crypto transactions exceeded $84.2 billion. More than 50 Ukrainian companies are developing blockchain solutions and serving clients around the world.
The Ministry of Digital Development is actively working to implement the regulatory framework for the crypto industry. On August 10, 2023, the Verkhovna Rada adopted the bill “On the regulation of digital content and digital services”, amended the Civil Code of Ukraine, legalizing transactions with virtual assets and providing citizens with the opportunity to protect their rights to them.
New bill
Bornyakov also mentioned a new bill registered by the Ministry of Digital Development in the Verkhovna Rada, which proposes:
- Exemption from VAT on operations of service providers related to virtual assets.
- Introduction of a 5% tax on income from crypto assets for individuals for the first three years, with the rate increasing to 9% for the next five years and to 18% after eight years.
- Introduction of 18% income tax for virtual asset service providers.
- Possibility of choosing through “Diya.City” between income tax and levy on withdrawn capital.
According to Bornyakov, this bill could become a compromise between the authorities, business representatives and users of digital assets. Thus, Ukraine continues to move towards creating favorable conditions for the development of the crypto industry and strengthening its position in the global market.
