Ukraine Legally Recognizes Cryptocurrencies for the First Time

The parliament of Ukraine has passed the draft law “On Virtual Assets”, thereby recognizing and regulating cryptocurrencies. This is the first time Ukraine has recognized cryptocurrency within the country. Reports say that the crypt legislation is based on the existing standards, developed by FATF (Financial Action Task Force on Money Laundering), the intergovernmental policy-making organization of Ukraine.

The implementation of this new digital asset regulation will be reportedly overseen by the country’s Ministry of Digital Transformation. It would also adhere to the international standards and accordingly guide the growth of the cryptocurrency industry.

The Ministry of Digital Transformation’s Anastasia Bratko has said that the new law will enable companies to launch digital assets in Ukraine. In fact, it will also allow the banks in the country to open accounts for cryptocurrency companies. Anastasia went on to say that “judicial protection of the rights to virtual asset owners” are guaranteed by the new virtual asset laws.

She said:

“Ukrainians will also be able to declare their income in virtual assets.”

The concerned ministry emphasized through its announcement that:

“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.”

The new law requires the Virtual Asset Service Providers (VASPs) to disclose their ownership structure so that the Ukraininan government can identify the ultimate beneficial owners. In fact, the VASPs are required to “have an impeccable business reputation” and they are required to maintain internal anti-money launder measures.

Oleksander Bornyakov, Deputy Minister of Digital Transformation of Ukraine, said that there are provision in the new legislation that will make the Ukrainian market attractive to the foreign cryptocurrency exchanges. He went on to say:

“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.”

 

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