Ukrainian lawmakers have approved an updated version of legislation tailored to regulate the country’s crypto economy. After the bill was passed in its first year of existence, President Volodymyr Zelesky requested that some modifications be made to it.
Majority of Ukrainian Deputies Back Law ‘On Virtual Assets’
Verkhovna Rada, Ukraine’s parliament, has adopted new legislation that will govern crypto activities in the country, a leader in Eastern Europe in terms of cryptocurrency adoption. A sizable majority of 272 out 365 voting members supported amended law “On Virtual Assets” on second and final reading on Thursday.
The draft law was initially approved in early September, 2021, but later returned to the Rada by Ukraine’s President Zelensky in October, with certain recommendations regarding crypto market regulators. Forklog reports that they have now been taken in consideration.
The bill originally proposed the creation of a regulatory body. However, the head of state opposed the idea, warning it would cost the budget. Sponsors of the bill have abandoned that plan and instead decided to remove oversight from the Ministry of Digital Transformation.
National Securities and Stock Market Commissions, (NSSMC), and National Bank of Ukraine will oversee the regulation of the cryptocurrency sector. NBU will oversee the government’s control of the virtual currency circulation secured with foreign currencies. NSSMC will monitor the remainder, such as collateralized securities and crypto derivatives.
This commission will issue permits, supervise the activity of service providers and create and maintain a national list for those entities who use cryptocurrencies. The commission will be responsible for implementing procedures to review cases involving violations of virtual assets laws and financial sanctions.
Reports also note Zelensky has now ten days left to sign the bill. However, the new legislation will enter into force only after the Rada introduces necessary changes to Ukraine’s Tax Code pertaining to the taxation of crypto income and profits. Within days, the amendments draft should be received.
What do you think the future holds for the Ukrainian crypto market? Please leave your comments below.
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