Ukraine Commits to Adopting European Crypto Asset Regulations

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Following the approval by the European Parliament of the Markets in Crypto-Assets (MiCA) Regulation, the Ukrainian authorities have publicly declared their intention to adopt this legislative package in their own country.

According to a Cointelegraph report, Yaroslav Zheleznyak, deputy chairman of Ukraine’s tax committee, announced on his Telegram channel on April 20 that he was collaborating with the National Securities and Exchange Commission (NKCPFR) and other tax bodies. regulations to implement certain provisions of the MiCA, thereby legalizing crypto assets in Ukraine. A member of the NKCPFR, Yurir Boyko, said he was convinced that Ukraine would be among the first countries to incorporate this regulation into their national legislation.

The adoption of MiCA is expected to support startups within the EU, potentially increasing their market share against unregulated competitors. The recent approval of this legislation by the European Parliament marks an important milestone for the crypto industry within the European Union.

MiCA is the very first European Union legislation for tracking crypto-asset transfers. It aims to deter money laundering, establish standard supervision and provide guidelines on consumer protection. The legislation subjects crypto transfers to the travel rule, which is already applicable in traditional finance. This rule requires that transaction information, including the source and recipient of the asset, be documented and stored at both ends of the transfer.

The MiCA framework, agreed with the Council in June 2022, contains provisions aimed at preventing market manipulation and financial crime. It will cover crypto-assets that are currently unregulated by existing financial services laws, targeting transparency, disclosure, authorization and transaction oversight for those who issue and trade crypto-assets.

Ukraine’s decision to adopt the EU regulations follows the country’s achievement of EU candidate status in June 2022. The European Council recognized Ukraine’s efforts to achieve the objectives underlying its status as a candidate for EU membership.

The introduction of custom regulations for the crypto industry in one of the world’s largest markets aims to protect users and foster innovation. Major players like Binance are ready to modify their business operations over the next 12-18 months to fully comply with new EU regulations.

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