Ukrainian President Zelensky Sends Virtual Assets Law Back to Parliament – Bitcoin News

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The Ukrainian president referred the recently adopted law on virtual assets to the Verkhovna Rada, the country’s legislative body. The head of state made his own suggestions and opposed the creation of a new regulatory body that would require additional funding.

New crypto market regulator will be costly, Zelensky warns

Ukraine’s parliament passed the long-awaited Virtual Assets Law in early September when lawmakers approved the bill at second and final reading. The legislation, designed to regulate crypto-related activities in the country, passed its first reading last December, after which it was revised and resubmitted to the Rada in June of this year.

In order to implement the new legislation, the Kiev authorities must make changes to the tax code and have the law on virtual assets signed by the president. However, Volodymyr Zelensky decided to return it to the Ukrainian deputies and ask for some changes.

Volodymyr Zelensky

In addition to introducing key legal definitions relating to cryptocurrencies, such as “financial virtual assets”, the document also divides responsibilities among government institutions that are supposed to oversee the circulation of digital assets under the jurisdiction of Ukraine. For example, if the assets are backed by currencies, they will be regulated by the National Bank of Ukraine (NBU), and if the underlying asset is a security, the National Securities and Stock Markets Commission (NSSMC ) will be responsible for the task. .

The law “On virtual assets” also provides for the establishment of a new regulatory body for the crypto market, subordinate to the executive power. This, according to Zelensky, “will require significant expenditure from the state budget,” the Ukrainian presidency explained in an announcement providing its reasons for calling for further revisions to the bill. The Head of State offers the NSSMC to take over these tasks instead.

The newly adopted legislation recognizes virtual assets as intangible assets and divides them into two main categories: secured and unsecured. Cryptocurrencies will not be accepted as a legal means of payment in Ukraine and their direct exchange for other goods or services will not be allowed.

The bill introduces a licensing regime for crypto service providers, meaning that exchanges and other digital asset platforms will need permission from the Ukrainian Ministry of Digital Transformation to operate in the nation. from Eastern Europe. The legislation does not determine the legal status of mining, but neither does it prohibit it. The upcoming tax changes will address the accounting procedures applicable to the various crypto-related activities.

Do you expect Ukrainian lawmakers to accept President Zelensky’s proposals and amend the law “on virtual assets”? Let us know in the comments section below.

Tags in this bill, Crypto, Cryptocurrencies, Cryptocurrency, Digital assets, duties, Law, Legislation, Proposals, Regulation, Regulations, regulator, Regulators, responsibilities, suggestions, Tax, tax changes, Ukraine, Ukrainian, assets virtual, Volodymyr Zelensky, Zelensky

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