Ukraine Passes Law to Legalize Bitcoin and Crypto Firms

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Key points to remember The Ukrainian parliament voted in favor of the “bill on virtual assets”. The bill recognizes crypto as an intangible asset and creates standards for exchange operations. It allows citizens to open and use bank accounts for transactions with crypto assets. Share this article

Ukrainian lawmakers voted in favor of legalizing crypto ownership and companies operating in space.

Ukraine gives citizens the right to own crypto

Ukraine has become the latest country to pass a crypto-friendly bill.

276 of the 376 members of the Verkhovna Rada voted in favor of the “Virtual Assets Bill”, a new law that regulates cryptocurrencies.

The regulation defines the rights and obligations of participants in the digital asset market. It legalizes crypto transactions, exchange operations and sets standards for investor protection.

As a final step, the bill will require a nod of approval from President Volodymyr Zelensky. Once the president ratifies the bill, he will implement regulatory standards that allow crypto companies to offer services and protect users from fraud.

Basically, the bill defines “virtual currency” as an intangible asset expressed by a set of data in electronic form, which citizens are entitled to own and with which to do business. In this regard, the bill recognized crypto assets under the Civil Code.

The proposed law allows citizens to open and use bank accounts for transactions with crypto assets such as Bitcoin and Ethereum. However, the document clarifies that crypto assets are not a means of payment that cannot be exchanged for goods and services. Only the official national currency, the Ukrainian hryvnia, can be used as the official currency of payment.

The bill clarified that crypto transactions should not contradict security measures taken by the country’s central bank. In accordance with FATF guidelines, all crypto exchanges in Ukraine will need to register and implement anti-money laundering and know your customer procedures to prevent money laundering and terrorist financing through cryptography.

Ukraine is already a focal point for cryptocurrency activity. Blockchain analytics firm Chainalysis ranks the Eastern European country fourth on its Global Crypto Adoption Index. Ukraine is known as a tech-savvy country. with over 230,000 professionals working in the software and IT industry.

Commenting on the bill, Ukraine’s Digital Transformation Ministry said the bill could open the door for crypto-based companies to enter the country.

Several industry experts based in Ukraine also welcomed the bill. In a public statement, CEO of the Binaryx exchange, Oleg Kurchenko, said it would “reduce stereotypical attitudes towards cryptocurrencies and help them become normal financial instruments.”

With its latest move, Ukraine appears to be taking steps to join the list of countries where crypto-based businesses are fully legal. Countries like Malta, Singapore, Hong Kong, Germany, Luxembourg and Japan have already put in place similar regulations legitimizing trading in digital currencies.

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