a new bill in Ukraine will allow crypto payments

According to the deputy minister of Ukraine’s Ministry of Digital Transformation, crypto payments will be permitted in Ukraine similar to payments deriving in the U.S. dollar.

According to a government official, a new cryptocurrency-related bill in Ukraine will allow payments in cryptocurrencies such as Bitcoin (BTC) despite the fact that crypto is not recognized as legal tender. Oleksandr Bornyakov, deputy minister of Ukraine’s Ministry of Digital Transformation, is confident that it would be “quite legal” in Ukraine to pay with cryptocurrencies via payment intermediaries that facilitate crypto-to-fiat conversions.

According to the official, who spoke to local financial publication Minfin on Friday, Ukraine’s draft bill on virtual assets “clearly states” that cryptocurrencies are not legal tender in the country, only allowing for crypto purchases. However, the bill provides that local payment processors may continue to provide services for converting crypto to fiat in order to facilitate payments made in crypto, stating:

“Today, the legislation in Ukraine also does not allow you to pay in dollars, but you can easily pay for purchases with a dollar card. Currencies are converted instantly during payment. […] Therefore, it will be quite legal to pay with cryptocurrencies in Ukraine, but through an intermediary.”

Bornyakov also noted that the upcoming bill will officially legitimize the process of cryptocurrency trading and reporting. “We expect that there will be a whole market of intermediary services for payment of goods by cryptocurrencies, their storage, and exchange. This will expand the possibilities of their use,” he added.

the Ministry of Digital Transformation recommended in late June that the second reading of an updated draft bill “On Virtual Assets” be adopted. Monobank, a local e-bank, later revealed plans to launch a debit card with Bitcoin trading capabilities.

The news comes shortly after Ukrainian President Volodymyr Zelensky signed another law relating to digital currencies, dubbed the Payment Services Law. The law established Ukraine’s central bank’s authority to issue its own digital currency, the digital hryvnia.

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