The Kyiv parliament has approved legislation governing crypto-related activities in Ukraine. The law on virtual assets classifies cryptocurrencies as intangible products but not legal currency. As well as regulating crypto companies’ activity.
Ukraine Legalizes Crypto, Defines VA
The Verkhovna Rada, Ukraine’s parliament, has passed the bill “On Virtual Assets” in its final reading. The legislation controls cryptocurrency transactions in Ukraine. The law was carried with 276 votes out of 376 present MPs, with only six voting against it.
Ukraine Adopts ‘Virtual Assets’ Law to Regulate Market
The long-awaited measure will take effect if lawmakers pass tax code amendments relating to cryptocurrency transactions. The Ukrainian legislature has yet to vote on the revisions, according to Forklog.
As intangible products, virtual assets are recognised as such by the new law. However, cryptocurrencies are not legal tender in Ukraine and cannot be exchanged for other products or services.
The law also defines “financial virtual assets” that must be issued by Ukrainian enterprises. If these assets are backed by currencies, the National Bank of Ukraine (NBU) will control them. If the underlying asset is a securities or a derivative, the NSSMC is the primary regulator.
Participants in the crypto market will be able to evaluate virtual assets, open bank accounts to settle transactions, and seek court protection for rights. Like traditional financial institutions, service providers must comply with anti-money laundering laws and avoid attempts to fund terrorists.
The current Ukrainian authorities are supportive of the country’s expanding crypto business, officials stated this week. A legitimate digital asset market is a “development vector” for the nation’s digital economy, according to President Volodymyr Zelensky. Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation, said the country is seeking to recruit crypto firms.
The Rada approved the proposed law on virtual assets in December. After making a few revisions, lawmakers re-released the paper in June. Following criticism from regulators such as the NBU and NSSMC, the law was changed again, this time taking into account additional government institutions.