On September 8, the Ukrainian parliament adopted the “On Virtual Assets” bill, which legally recognizes cryptocurrencies for the first time and regulates both foreign and domestic exchanges operating within the country. The legislation is based on existing standards developed by the intergovernmental organization for policy making, the Financial Action Task Force on Money Laundering (FATF).
The Ministry of Digital Transformation of Ukraine will have the task of supervising the implementation of the new regulation and guiding the growth of the crypto sector, in compliance with the “international standards“.
Anastasia Bratko of the Ministry of Digital Transformation said the law will allow companies to launch virtual asset exchanges and banks to open accounts for companies operating in the crypto sector.
“Ukrainian citizens will also be able to declare their income in virtual goods“he said, adding that the law”guarantees the owners of virtual assets the judicial protection of rights.“
A ministry announcement stressed that “the country will receive additional tax revenues from crypto companies“now properly regulated:
“The adopted rules establish rules for service providers relating to the circulation of virtual goods, and contribute to the ‘de-shadowing’ of the market”.
I virtual asset service providers (VASP) “they must have an impeccable corporate reputation“and will be required to disclose the facility used to identify their ultimate beneficiaries. VASPs will also need to maintain anti-money laundering measures internally.
Ukraine’s Deputy Minister of Digital Transformation Oleksander Bornyakov highlighted the provisions contained in the legislation to attract “foreign currency on the Ukrainian market“:
“It will become a powerful incentive for the further development of the cryptosphere in Ukraine. Banks will open accounts for companies in the sector and conduct transactions with a new asset class. I am sure that society, businesses and the state will benefit from the legalization of the new sector of the economy ”.
Last month, Mikhail Fedorov, Ukrainian Deputy Prime Minister and head of the Ministry of Digital Transformation, revealed that his ministry was exploring the use of a central bank issued digital currency (CBDC) to pay salaries.
In July, Ukrainian President Volodymyr Zelenskyy signed a law that will allow the central bank to issue a CBDC.
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