Ukraine wishes to provide an inviting regulatory environment suitable for the growth of foreign cryptocurrency exchanges.
Ukraine’s Parliament has approved a draft bill recognizing and regulating cryptocurrencies and other digital assets. On September 8th, a total of 276 Ukrainian MPs voted in favor of the bill, sending it directly to President Volodymyr Zelensky’s desk.
In Ukraine, cryptocurrency is about to emerge from legal limbo. The Verkhovna Rada, Ukraine’s parliament, has officially accepted bill 3637 on virtual assets, legalizing cryptocurrencies for the first time in the country. While digital assets were never deemed unlawful, they were in legal limbo because they were not recognized by any of the country’s legislative bodies.
According to the Kyiv Post, Ukraine’s new bill defines digital assets as intangible assets expressed in the form of computer data. Additionally, it provides thorough definitions of digital wallets and private keys, as these terms have never been used in any Ukrainian legislation.
If President Zelensky approves the new law, the country’s Ministry of Digital Transformation will be responsible for overseeing its implementation. Additionally, the ministry would endeavor to “guide the industry’s expansion” in accordance with established norms established by the Financial Action Task Force on Money Laundering (FATF).
Related: Ukraine Takes Steps To Legalize Cryptocurrency
In contrast to El Salvador’s announcement earlier this week, Ukraine’s new law does not accept cryptocurrency as legal tender. This means that Ukrainians cannot use cryptocurrencies as a means of payment or trade them for products and services; only the hryvnia, the country’s native currency, is permitted.
Ukrainians can possess, swap, and trade any type of cryptocurrency through registered domestic and international exchange platforms. The regulation simplifies the process of registering crypto firms by demanding proof of transparency and a charge starting at $3,100.
Ukraine’s Minister of Digital Transformation, Mykhailo Fedorov, feels that regulating cryptocurrencies will make them safer and more appealing to investors. He also underlined that the measure was part of the country’s drive to modernize its payment system, CNN said.
President Zelensky stated last month during an official visit to the United States that the government was developing a “legal innovative market for virtual assets” that would serve as the primary selling point for foreign investment.
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