Ukraine has taken a big step forward with cryptocurrency policy. On September 8, the country’s parliament cleared a draft bill related to the use of cryptocurrencies in the country. The bill concerning laws “On Virtual Assets,” is also amongst the first such draft bills in the country that recognizes cryptocurrencies legally.
The new law also regulates cryptocurrency exchanges and other fintech firms operating within the crypto world. Ukraine has also confirmed that its new law is based on the current standards recommended by the global financial policymaking organization the Financial Action Task Force on Money Laundering (FATF).
Following the approval of the draft law by Ukraine’s parliament, the country’s Ministry of Digital Transformation will be supervising and monitoring the entire process of the implementation of the provisions in the law. It will see how companies can launch the virtual asset market.
Anastasia Bratko of the Ministry of Digital Transformation said: “Ukrainians will also be able to declare their income in virtual assets,” she said, adding that the law “guarantees judicial protection of the rights to virtual asset owners.”
The idea behind regulating and legalizing crypto in Ukraine is to attract investors and new blockchain startups to the country.
In an announcement, the ministry said: “the country will receive additional tax revenues to the budget, which will be paid by crypto companies.”
“The adopted norms establish rules for service providers related to the circulation of virtual assets and contribute to the market’s de-shadowing,” it added.
Deputy Minister of Digital Transformation of Ukraine, Oleksander Bornyakov, said that the new law “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.”