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- Ukraine is hopeful that its new digital asset rules would entice global crypto exchanges to open offices in the country
- Ukrainians will be allowed to report their income from virtual assets as well, she added, adding that the law ensures legal protection of virtual asset owners’ rights
- Oleksander Bornyakov, Ukraine’s Deputy Minister of Digital Transformation, emphasized elements in the legislation aimed at attracting foreign exchange to the Ukrainian market, adding, that it will serve as a tremendous motivator for Ukraine’s crypto-sphere to expand further
Ukraine is hopeful that its new digital asset rules would entice global crypto exchanges to open offices in the country. The Ukrainian Parliament has passed laws governing the operation of foreign and local cryptocurrency exchanges from within the nation.
The Ukrainian Parliament passed the draught law On Virtual Assets on September 8, making cryptocurrencies legal for the first time in the nation. The legislation is based on existing guidelines set by the Financial Action Task Force on Money Laundering, an intergovernmental policy-making group (FATF). The Ministry of Digital Transformation of Ukraine will be in charge of supervising the new virtual asset regulation’s implementation and directing the industry’s growth in accordance with international norms.
The law, according to Anastasia Bratko of the Ministry of Digital Transformation, permits businesses to create virtual asset exchanges in Ukraine and allows banks to register accounts for crypto firms.
Ukrainians will be allowed to report their income from virtual assets as well, she added, adding that the law ensures legal protection of virtual asset owners’ rights. The ministry stated in a statement that the nation will get more tax revenues to the budget, which will be paid by crypto firms, and that the country will receive additional tax revenues to the budget, which will be paid by crypto companies. The established standards create regulations for service providers in relation to the circulation of virtual assets and help to de-shadow the market. Virtual asset service providers (VASPs) will be obliged to reveal their ownership structure in order to identify their ultimate beneficial owners, and they will be expected to maintain an impeccable corporate reputation. VASPs must also maintain internal anti-money laundering procedures.
Oleksander Bornyakov, Ukraine’s Deputy Minister of Digital Transformation, emphasized elements in the legislation aimed at attracting foreign exchange to the Ukrainian market, adding that it will serve as a tremendous motivator for Ukraine’s crypto-sphere to expand further. Banks will create accounts for them and execute transactions with a new asset class.
He is certain that the legalization of this new sector of the economy would benefit society, business, and the state. Ukraine’s Deputy Prime Minister and Minister of Digital Transformation, Mikhail Fedorov, disclosed last month that his ministry was testing the use of a central bank digital currency (CBDC) to process wage payments in an early pilot of the technology. In July, Ukrainian President Volodymyr Zelenskyy approved legislation allowing the central bank to issue a CBDC.