Ukrainian lawmakers pass bill to make cryptocurrencies legal

Ukraine is the latest country to take an interest in cryptocurrencies and to grant businesses and cryptocurrency exchanges the freedom to operate.

For some time there has been an 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 Kyiv Post, this obscurity seems to end after Ukrainian lawmakers pass a bill to make cryptocurrencies legal. The bill also aims to regulate the cryptocurrency industry in the country.

“This law regulates the 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 we read in the bill.

Second reading of the cryptocurrency bill passed almost unanimously with 276 supporters and only six lawmakers opposed. The next stop 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 law.

Entities in the crypto sector will be able to operate freely, starting with international blockchain companies, which will be able to enter the country’s crypto scene. These companies will also be authorized to work directly with traditional 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 that their assets are stolen.

The deputy minister noted that the legislation would play a crucial role in spurring growth within the Ukrainian crypto space. The bill means that Ukrainian entities will be able to operate international cryptocurrency exchanges, provided that these institutions comply with registration procedures and reporting requirements.

The implementation of the bill will result in the creation of the National Virtual Assets Regulatory Service (NVARS), which is responsible for licensing cryptocurrency businesses in the European country. In addition, the Ministry of Digital Transformation will be responsible for overseeing the market, with the assistance of the National Commission for Securities and Stock Markets and the National Bank of Ukraine in some cases.

It is important to note that just because consumers can legally own cryptocurrencies does not mean that cryptocurrencies are genuine as legal tender or as a method of payment. 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 the establishment of too many regulations could strangle the still evolving crypto space and the businesses associated with it.