Ukraine Latest Country To Prepare For Cryptocurrencies As It Seeks To Grant Freedom To Crypto-Oriented Business And Exchanges
For some time, ambiguity has reigned over the legality of digital assets in Ukraine. Cryptocurrencies like Bitcoin are in a gray area with no apparent law to define their status. However, as the Kyiv Post reports, the darkness seems to be coming to an end after Ukrainian lawmakers passed a bill to legalize cryptocurrencies. The bill also aims to regulate the cryptocurrency industry in the country.
“This law regulates the legal relations arising from the rotation of virtual assets in Ukraine, defines the rights and obligations of participants in the virtual asset market and the principles of state policy in the field of virtual assets. the bill reads.
Second reading of the crypto bill passed by a nearly unanimous vote with 276 supporters and just six lawmakers opposing it. The next stop for the bill is the office of President Volodymyr Zelensky. The niche of the Ukrainian crypto landscape will finally see some order if the president promulgates it.
Entities in the crypto industry will be able to operate freely, starting with international blockchain companies, which will be able to enter the country’s crypto scene. Companies will also be allowed to work directly with traditional banking institutions.
Crypto owners will also be among the beneficiaries of the law, if approved, according to Deputy Minister of Digital Transformation for IT Development Alex Bornyakov. The law will provide them with legal remedies and protection in the event that their property is stolen.
The deputy minister noted that the legislation would play a crucial role in stimulating growth within the Ukrainian crypto space. The bill means that Ukrainian entities could manage international crypto exchanges, as these institutions comply with registration procedures and reporting requirements.
The implementation of the bill will create the National Virtual Assets Regulatory Service (NVARS) responsible for licensing crypto companies in the European country. In addition, the Ministry of Digital Transformation will be responsible for overseeing the market, receiving assistance from the National Commission for Securities and Stock Markets and the National Bank of Ukraine in some cases.
It is important to note that consumers who can legally own crypto would not signify the authenticity of crypto as legal tender or a method of payment. The hryvnia, the national currency of Ukraine, will retain its sovereignty in these transactions.
However, even with the acceptance of Bitcoin in Ukraine, experts still fear that establishing too many regulations could put the brakes on the still-evolving crypto space and its associated activities.