Ukraine is the latest country warming up to cryptocurrencies as it seeks to grant crypto-oriented companies and exchanges freedom
For some time, there has been ambiguity over the legality of digital assets in Ukraine. Cryptocurrencies like Bitcoin have been in a grey area with no apparent laws to define their status. However, as reported by Kyiv Post, the obscurity is seemingly coming to an end after Ukrainian lawmakers passed a bill to make cryptocurrencies legal. The bill also seeks to regulate the cryptocurrency sector in the country.
“This law regulates legal relations arising in connection with the turnover of virtual assets in Ukraine, defines the rights and obligations of participants in the virtual assets market, and the principles of state policy in the field of virtual assets,” the draft of the bill reads.
The crypto bill’s second reading was passed by a close to unanimous vote with 276 proponents and only six legislators opposing it. The next stop for the bill is President Volodymyr Zelensky’s desk. The Ukrainian crypto landscape niche will finally see some sense of order if the President signs it into law.
Entities in the crypto industry will be able to operate freely, starting with international blockchain companies, which will be able to get into the country’s crypto scene. The companies will also be permitted to work directly with conventional banking institutions.
Crypto owners will also be among the law’s beneficiaries, if approved, according to Deputy Minister of Digital Transformation for IT Development, Alex Bornyakov. The law will offer them legal recourse and protection in case of theft of their assets.
The deputy minister noted that the legislation would play a crucial role in provoking growth within Ukraine’s crypto space. The draft law means that Ukrainian entities would be able to run international crypto exchanges, given that such institutions comply with registration procedures and reporting requirements.
The bill’s implementation will create the National Virtual Assets Regulatory Service (NVARS) tasked with licensing crypto firms in the European country. Additionally, the Ministry of Digital Transformation will be tasked with overseeing the market, receiving help from the National Securities and Stock Market Commission and the National Bank of Ukraine, in some instances.
It is important to note that consumers being able to own crypto legally would not signify the authenticity of crypto as legal tender or a payment method. The hryvnia, Ukraine’s national currency, will retain its sovereignty in those transactions.
However, even with the acceptance of Bitcoin in Ukraine, experts remain worried that establishing too many regulations could yet throttle the still evolving crypto space and its associated businesses.