Ukraine Passes Virtual Assets Law to Regulate Crypto Market – Bitcoin Regulation News

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The Kiev parliament has passed a law determining the rules for crypto-related operations in Ukraine. The “On Virtual Assets” law recognizes cryptocurrencies as intangible assets while denying them the status of legal tender. It also regulates the activities and obligations of crypto companies.

Ukraine legalizes crypto activities and defines virtual assets

Ukraine’s Verkhovna Rada, the country’s parliament, passed the law “on virtual assets” at second and final reading. The legislation regulates operations with cryptocurrencies in Ukrainian jurisdiction. MPs passed the bill with a large majority of 276 votes out of 376 MPs present, with just six votes against the motion.

The long-awaited law will come into force after lawmakers approve amendments to the country’s tax code regarding the taxation of cryptocurrency transactions. The Ukrainian legislature has yet to vote on these changes, Forklog noted in his developments report.

The provisions of the new law recognize virtual assets as intangible property, which can be secured and unsecured. However, cryptocurrencies are not accepted as a legal means of payment in Ukraine and their exchange for other goods or services will not be allowed.

The law also introduces the term “financial virtual assets” which must be issued by entities registered in Ukraine. If these assets are backed by currencies, they will be regulated by the National Bank of Ukraine (NBU), the country’s central bank. If the underlying asset is a security or derivative, the National Securities and Markets Commission (NSSMC) will be the primary regulator.

Participants in the crypto market will be able to independently determine the value of virtual assets, open bank accounts to settle transactions, and seek legal protection for associated rights. Service providers are required to comply with national anti-money laundering regulations and prevent terrorist financing attempts using their platforms, just like traditional financial institutions.

Current Ukrainian authorities have maintained a positive attitude towards the country’s growing crypto industry, confirmed by representatives of the executive branch this week. During a visit to the United States, President Volodymyr Zelensky stressed the importance of launching a legal market for digital assets which he described as a “driver of development” of the country’s digital economy. Ukrainian Minister of Digital Transformation Mykhailo Fedorov added that the country is striving to become an attractive jurisdiction for crypto companies.

The bill “On virtual assets” was passed at first reading in the Rada last December. After introducing a number of changes, lawmakers presented a revised version of the document in June this year. Following criticism from various regulators, including the NBU and NSSMC, the bill was amended again, with the authors taking into account concerns expressed by other government institutions.

Do you think the business climate in Ukraine will improve for crypto companies after the passage of the law on virtual assets? Share your expectations in the comments section below.

Tags in this story adoption, bill, Crypto, crypto assets, crypto industry, crypto sector, crypto space, Cryptocurrencies, Cryptocurrency, document, Law, Legislation, parliament, provisions, reading, Regulations, rules, Ukraine, Ukrainian, Virtual Assets, Voting

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