Ukraine Set To Legalize Bitcoin As Parliament Passes Crypto Bill On Second Reading

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Ukraine is on track to legalize cryptocurrencies like Bitcoin after the country’s parliament passed second reading on the bill on virtual assets on Wednesday.

The bill passed by 276 deputies aims to regulate cryptocurrencies allowing holders to trade and legally declare them, reports the AIN.

If the law is approved, international blockchain companies will also have the ability to register and operate in the country.

In addition to legalizing cryptocurrencies, the bill also aims to protect market participants by offering them the right to judicial and other means to protect their digital currencies.

The bill instructed the Ministry of Digital Transformation to regulate the cryptocurrency market. However, to a certain extent, the National Bank of Ukraine and the National Securities and Stock Market Commission could oversee the sector.

Elsewhere, the bill spurred the formation of a new regulator, the National Virtual Assets Regulatory Service (NVARS), focused on licensing the country’s crypto companies. At the same time, the Financial Action Task Force will conduct financial monitoring of digital currencies.

Benefits of legalizing cryptocurrencies in Ukraine

Officials said cryptocurrency holders and players would operate in a transparent market if the bill passed.

Cryptocurrency owners will enjoy several benefits. Because there will be a legal basis for cryptocurrencies, they will at least be able to protect their virtual wealth if something happens. They will also have the right to trade crypto assets and report them. This process will be completely transparent, said Alex Bornyakov, Deputy Minister of Digital Transformation for IT Development.

The official added that there would be a natural market for intermediaries to pay for goods using cryptocurrencies with the legislation.

The development comes barely a day after El Salvador officially adopted Bitcoin as legal tender. The country’s decision inspired other jurisdictions to start considering legalizing cryptocurrencies.

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