Weekly Digest: Ripple Plans to Obtain License in the UK, Kuwait Bans Cryptocurrency Operations, Taxation of Crypto Income in Ukraine

News Summary for the Previous Week!‍

✅ Kuwait Government Bans Cryptocurrency Operations
The Capital Markets Authority (CMA) in Kuwait declared that cryptocurrencies do not have legal status. On July 8, the regulator issued a circular on supervision and the issuance of virtual assets in the country.The restrictions apply to major uses of crypto-assets, namely:• The use of virtual assets as a payment instrument or recognizing them as decentralized currency in the state.• Any activity involving the mining of virtual currency.• Dealing with virtual assets as an investment instrument is prohibited.The circular also prohibits local regulatory bodies from issuing any licenses that permit companies to provide services related to virtual assets.

‍✅ Representative of the NCSSFR Talks about Preparing Taxation of Cryptocurrency Income for Ukrainians
In mid-June 2023, the National Commission on Securities and the Stock Market (NCSSFR) presented a new draft law on cryptocurrency taxation in Ukraine. It aims to introduce certain changes to the current regulatory framework, particularly the Tax Code.

For individuals, the following operations are subject to taxation:

• Selling virtual assets for hryvnias.
• Exchanging cryptocurrencies for goods or services. The following are not subject to taxation:
• Mining, placement, and redemption of tokens by the issuing company.• Exchanging one virtual asset for another.
• Increase in the market value of the owner's portfolio.

For legal entities, no privileges or exemptions are provided. All investors in this category are obliged to pay income tax at the general rate of 18%.

Additionally, citizens will be required to declare information about their cryptocurrency income independently.

‍✅ Ripple Plans to Expand Business in Europe
Ripple has announced plans to obtain a license in the United Kingdom. The company has already applied for registration as a crypto asset firm with the Financial Conduct Authority (FCA) of the UK and also for obtaining a payment institution license in Ireland.Over the past 18 months, the company's workforce in the UK and Europe has increased by approximately 75%. At the time of writing, more than 100 employees are working in offices in London, Dublin, and Reykjavik.