On Tuesday, Ukrainian President Volodymyr Zelensky sent a cryptocurrency law back to Parliament for modification, requesting that the National Securities and Stock Market Commission of Ukraine be recognized as the country’s primary cryptocurrency regulator.
On September 8, the crypto bill passed its second parliamentary hearing. By signing the law, Zelensky would have made Ukraine the fifth country to recognize Bitcoin and other cryptocurrencies as legal financial assets, after Germany, Luxembourg, Singapore, and Japan.
Three departments would have been established in the bill’s present form to oversee various elements of cryptocurrency: The Ministry of Digital Transformation (also known as the Ministry of Finance of Ukraine) would be in charge of cryptocurrency supervision; the National Securities and Stock Market Commission would be in charge of digital assets backed by securities, and the National Bank of Ukraine would be in charge of central bank-backed digital currency issuance (CBDC).
According to the Kyiv Post, Ukraine’s Minister of Digital Transformation Mykhailo Fedorov backed the measure, stating that cryptocurrency-friendly regulations will keep cryptocurrency firms registered in Ukraine, allowing the country to collect taxes from them.
According to Chainalysis’s Global Cryptocurrency Adoption Index, Ukraine, Russia, and Venezuela have the highest rates of cryptocurrency adoption in the world. Federov stated that Ukraine’s daily trading volume of virtual assets is US$37,000.
Ukraine, on the other hand, is a hotbed of cryptocurrency fraud. According to the Chain analysis study, Ukraine is responsible for the majority of bitcoin frauds, delivering more network traffic to fraudulent websites than any other nation and more than double the total network visits to the United States, which is placed second. Eastern Europe, as a region, is second only to Africa in terms of fraudulent operations.
President Zelensky approved legislation establishing CBDC as a currency alternative in July 2021. Since 2018, the central bank has been considering establishing a CBDC.
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