Now, Ukraine is also legalizing Cryptocurrencies

Now, Ukraine is also legalizing Cryptocurrencies

Now, Ukraine is also legalizing Cryptocurrencies
Flag of Ukraine with Bitcoin depiction

The Kyiv parliament has passed legislation that establishes the framework for crypto-related activities in Ukraine. The “On Virtual Assets” law acknowledges cryptocurrencies as intangible goods, but does not grant them legal money status. It also governs the operations and responsibilities of cryptocurrency enterprises.

Ukraine Declares Cryptocurrency Activities Legal and Defines Virtual Assets

Ukraine’s parliament, the Verkhovna Rada, has passed the bill “On Virtual Assets” in its second and final reading. In the Ukrainian jurisdiction, the legislation governs cryptocurrency transactions. Only six deputies voted against the bill, while the majority of the votes (276 votes out of 376 votes) was in favor of the amendment.

Now, Ukraine is also legalizing Cryptocurrencies. Ukraine Declares Cryptocurrency Activities Legal and Defines Virtual Assets
 Verkhovna Rada by Martin Schulz from flickr under licenses CC BY-NC-ND 2.0

After lawmakers approve revisions to the country’s tax code pertaining to the taxation of cryptocurrency transactions, the long-awaited bill will take effect. According to Forklog’s report on the situation, the Ukrainian legislature has yet to vote on these modifications.

Virtual assets are recognized as intangible goods under the new law, which might be secured or unsecured. Cryptocurrencies, on the other hand, are not recognized as legal tender in Ukraine, and their exchange for other products or services will be prohibited.

The law also defines the term “financial virtual assets,” which must be issued by Ukrainian enterprises. If the virtual assets are supported by fiat currency, then they will be regulated by the central bank of Ukraine. The National Securities and Stock Market Commission (NSSMC) will be the primary regulator if the underlying asset is a securities or a derivative.

Participants in the crypto market will be able to establish the worth of virtual assets on their own, open bank accounts to settle transactions, and seek court protection for their rights. Like traditional financial institutions, service providers must follow the country’s anti-money laundering legislation and prohibit attempts to finance terrorism through their platforms.

Ukrainian authorities have maintained a constructive stance toward the country’s burgeoning crypto economy, according to officials from the executive branch this week. President Volodymyr Zelensky emphasized the significance of developing a legal digital assets market during a visit to the United States, calling it a “development vector” for the country’s digital economy. Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation, stated that the government is aiming to become a more appealing location for crypto firms.

Last December, the Rada voted on the draft law “On Virtual Assets” in its first reading. In June of this year, lawmakers released a revised version of the document after making a number of revisions. Following criticism from a number of regulators, notably the NBU and the NSSMC, the law was rewritten, with the writers taking into account the concerns of other government agencies.

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