Ukraine is the latest country to take an interest in cryptocurrencies and give companies and cryptocurrency exchange platforms the freedom to exercise.
For some time, there has been ambiguity about the legality of digital assets in Ukraine. Cryptocurrencies like Bitcoin have been in a gray area with no apparent laws to define their status. However, as reported by the Kyiv Post, this darkness seems to be coming to an end after Ukrainian lawmakers passed a bill to make cryptocurrencies legal. The bill also aims to regulate the cryptocurrency sector in the country.
“This law regulates legal relations arising from the turnover of virtual assets in Ukraine, defines the rights and obligations of participants in the virtual asset market and the principles of state policy in the field of virtual assets “, can be read in the bill.
The second reading of the cryptocurrency bill passed almost unanimously with 276 supporters and only six lawmakers opposing it. The next step for the bill is the office of President Volodymyr Zelensky. The niche of the Ukrainian crypto landscape will finally experience some sense of order if the president signs it as a law.
Entities in the crypto sector will be able to operate freely, starting with international blockchain companies, which will be able to break into the country’s crypto scene. These companies will also be allowed to work directly with conventional banking institutions.
Crypto holders will also be among the beneficiaries of the law, if approved, according to deputy minister of digital transformation for IT development Alex Bornyakov. The law will provide them with legal recourse and protection in the event of theft of their assets.
The deputy minister noted that the legislation will play a crucial role in causing growth within the Ukrainian crypto space. The bill means that Ukrainian entities will be able to manage platforms for international cryptocurrency exchanges, provided that these institutions comply with registration procedures and reporting requirements.
The implementation of the bill will lead to the creation of the National Virtual Asset Regulatory Service (NVARS), which is responsible for issuing licenses to cryptocurrency companies in the European country. In addition, the Ministry of Digital Transformation will be responsible for overseeing the market, with the assistance of the National Securities and Stock Markets Commission and the National Bank of Ukraine, in some cases.
It is important to note that the fact that consumers can legally own cryptocurrencies does not mean that cryptocurrencies are genuine as legal tender or payment method. The hryvnia, the national currency of Ukraine, will retain its sovereignty in these transactions.
However, even with the acceptance of Bitcoin in Ukraine, experts fear that establishing too many regulations will strangle the still-evolving crypto space and the companies associated with it.