President Volodymyr Zelenskyy has signed the law “On Virtual Assets” which aims to regulate the crypto market in Ukraine. This approval came as Ukraine is increasingly dependent on cryptocurrency donations to finance its defense and address humanitarian issues.
Ukraine President Zelenskyy approved law regarding cryptocurrencies
Volodymyr Zeleskyy, Ukrainian President, has passed a law setting out rules regarding cryptocurrency transactions. The law “On Virtual Assets” will allow crypto platforms to operate in the country which has been using digital assets to finance its defense efforts and help its civilian population in the face of Russia’s military assault.
“Ukraine has legalized the crypto sector,” the Ministry of Digital Transformation tweetedWednesday. “From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally and banks will open accounts for crypto companies,” added the department, which has been involved in the raising of crypto funds.
Virtual assets are divided into three categories by the law. Cryptocurrencies like bitcoin are classified as ‘unsecured’ assets as opposed to ‘secured’ virtual assets such as profit-bearing security tokens. Financial instruments like tokenized stocks as well as stablecoins and central bank digital currencies are in the third group, ‘financial’ virtual assets.
In September, the Verkhovna Rada adopted the draft. However Zelenskyy returned the document the next month and recommended changes to regulatory bodies. In mid-February, the Ukrainian parliament adopted the law after taking his recommendations into account. Zelenskyy signed it in 10 days. After that, the war broke out.
Although the law on virtual assets contemplated the establishment a unique crypto regulatory body, before the latest revision was introduced, the Ukrainian head of government opposed the idea and warned that it would increase budget expenditures. The lawmakers approved and relieved the oversight responsibility of the digital ministry.
According to the new rules, the primary crypto regulators are the National Securities and Stock Market Commission and the National Bank of Ukraine. NBU and NSSMC are responsible for overseeing the circulation of digital assets.
This commission will issue permits for crypto service providers and maintain a list of them. It also oversees their activities. The commission is responsible for identifying violations and imposing sanctions. This legislation guarantees cryptocurrency owners the judicial protection of all other rights.
The law “On Virtual Assets” of Ukraine, which is a leader in terms of crypto adoption in Eastern Europe, will enter into force after Ukrainian deputies update the country’s Tax Code. These changes will regulate taxation on crypto-related profits and incomes.
You can support Ukrainian families, children, refugees, and displaced people by donating BTC, ETH, and BNB to Binance Charity’s Ukraine Emergency Relief Fund.
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