Work is underway in Ukraine to update the legal act that applies to cryptocurrencies in order to align the nation’s legislation with European standards. Several government institutions in Kyiv are preparing changes to the bill “On Virtual Assets,” which was signed into law earlier this year.
Ukraine to Transpose European Crypto Regulations in National Law
Ukraine’s law “On Virtual Assets,” the main piece of legislation that concerns the country’s crypto space, will be amended in accordance with the provisions of the European Union’s Markets in Crypto Assets (MiCA) legislative package.
Since the East European nation was granted the status of a candidate for EU membership, Ukraine needs to adapt its national legislation to European standards, the country’s Ministry of Digital Transformation explained, quoted by the crypto news outlet Forklog.
Although the law was adopted first by the Ukrainian parliament one year ago, President Volodymyr Zeleskyy reaffirmed it and made some suggestions. In February, the Verkhovna Rada approved the amended bill and Zelenskyy signed them into law.
This report suggests that the legislation regarding virtual assets may undergo substantial changes. The National Securities and Stock Market Commission of Ukraine (NSSMC), National Bank of Ukraine, and other representatives of the sector are all working to amend the legislation. This is the digital ministry.
It is possible that the revised classification for virtual assets could be affected. We will be reviewing the terms of initial VA offerings.
The new version of the law “On Virtual Assets” is likely to be filed towards the end of 2022. NSSMC stressed that the amendment was necessary to create rules for taxation of cryptocurrency. This bill will also be filed. The VA legislation will enter into force only after the amendment of Ukraine’s Tax Code.
The government is attempting to regulate crypto after Ukraine has become a leading country in terms of cryptocurrency adoption throughout the region. Chainalysis is a Blockchain analytics company that ranks third the country in its most recent edition of the global crypto adoption Index.
In June, Ukraine was granted the status as a candidate to join EU. In early July, the key participants in the European Union’s complex legislative process — the Parliament, Council, and Commission — agreed to implement MiCA across the 27-strong bloc.
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