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On September 8, Ukrainian parliament Verkhovna Rada passed a virtual asset bill that legalizes and regulates cryptocurrencies. According to Kyiv Post, 276 lawmakers voted in favor of the bill during its second reading.
Ukrainian Parliament Passes Law to Legalize and Regulate Cryptocurrencies
To legitimize its crypto market for investors and businesses, the Ukrainian parliament has approved Bill No. 3637 On Virtual Assets. The bill defines cryptocurrencies as intangible assets and also contains classifications for digital wallets and private keys.
Despite the huge step, Ukraine hasn’t allowed crypto in payments for goods and services -- a privilege reserved for the country’s official currency hryvnia. However, Ukrainians can now legally hold and trade cryptocurrencies through local and foreign exchanges in the country.
The legislation also empowers blockchain businesses that previously feared unfair law enforcement. Although, they will be required to register with the authorities and submit a background record proving excellent reputation. Also, the government plans to create a separate agency that will issue permits to crypto firms -- which can cost more than $3,100.
Cryptocurrencies are immensely popular in Ukraine, with an estimated daily turnover of $37,000. Therefore, recognizing them will encourage the booming industry and prevent crypto investors from leaving the country.
As per Mykhailo Fedorov, Ukraine’s Minister of digital transformation, the new law will foster “favorable conditions [that] allow companies to register in Ukraine, rather than abroad.” He added that it will also “reduce stereotypical attitudes towards cryptocurrencies and will help them to become normal financial instruments.”
Bill Requires President Zelensky’s Approval
Before the bill is implemented, it needs the consent of Ukrainian President Volodymyr Zelensky, who already believes his country is a magnet for crypto specialists in Europe.
In a recent meeting with prominent investors, Zelensky said:
Following his approval, the Ministry of Digital Transformation, the National Bank of Ukraine, and the National Securities Commission will be responsible for overseeing the enforcement of new regulations.