The new legislation will regulate crypto, and Ukraine thinks it will bring a large number of foreign exchanges into the country.
With almost a unanimous vote, the parliament passed the proposed bill. Virtual currencies are now officially recognized. Since crypto wasn’t exactly legalized by authorities, things are about to change in Ukraine.
“Ukrainians will also be able to declare their income in virtual assets. Guarantees judicial protection of the rights to virtual asset owners.”
The draft law is titled “On Virtual Assets” and was adopted by the parliament on September 8. The government based the new crypto legislation on international guidelines set by the Financial Action Task Force on Money Laundering (FATF).
The law is now on President Volodymyr Zelensky’s desk and waiting to be approved. Certain terms like virtual assets, digital wallets, and many more will be recognized in Ukraine. The Ministry of Digital Transformation will be in charge of supervising and implementing the new rules.
But how will it help the Ukrainian economy?
According to the new law, firms can launch digital asset markets in the country, and banks are allowed to open accounts for businesses that are related to crypto. “The adopted norms establish rules for service providers related to the circulation of virtual assets and contribute to the market’s de-shadowing.”
The Ukrainian budget will receive additional tax revenues and they will be paid by crypto companies. Virtual asset service providers (VASPs) “must have an impeccable business reputation” and anti-money laundering rules have to be followed.
“It will become a powerful incentive for the further development of the crypto-sphere in Ukraine. Banks will open accounts for them and conduct transactions with a new class of assets. I am sure that society, business and the state will benefit from the legalization of the new sector of the economy.”
The Ukrainian crypto law is quite similar to the El Salvadoran one but also has many differences. You can read more about the Latin American country adopting Bitcoin as legal tender here.
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