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Home News Latest News

Ukraine Set to Regulate Crypto Market After Adopting “Virtual Assets” Law

14 September 2021
in Latest News, News
Reading Time: 2 mins read
106 3
Ukraine Set to Regulate Crypto Market After Adopting “Virtual Assets” Law

image source: news.bitcoin.com

After scaling the second and final reading, Ukraine’s Verkhovna Rada, the country’s parliament, has adopted the law “On Virtual Assets”. 

The regulation of cryptocurrency operations in Ukraine lies in the jurisdiction of the legislation. The Virtual Assets bill was passed after 276 out of 376 lawmakers voted in favour of the bill. Only six lawmakers voted against it.

The law is expected to take effect only after Ukrainian lawmakers approve amendments in the country’s tax laws to also include taxation on digital currencies, Forklog said in its report on the development.

According to the report, the provisions of the new law recognize virtual assets as intangible goods, which can be secured and unsecured. Cryptocurrencies, however, are not accepted as a legal means of payment in Ukraine and their exchange for other goods or services will not be allowed.

The law also introduces the term “financial virtual assets” that must be issued by entities registered in Ukraine. In case these assets are backed by currencies, they will be regulated by the National Bank of Ukraine (NBU), the country’s central bank. If the underlying asset is a security or a derivative, the National Securities and Stock Market Commission (NSSMC) will be the main regulator.

The draft law “On Virtual Assets” was voted on first reading in the Rada last December. After introducing a number of changes, lawmakers presented a revised version of the document in June 2021. 

The bill was further amended after it received criticism from several government regulatory bodies, including the NBU and NSSMC.

 

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Lucy Adegbe

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