On September 8, the Ukrainian Parliament introduced a bill related to cryptocurrency regulation and legislation and other virtual assets like tokens.
The status of crypto activity in the country like most other countries including India is neither illegal nor legal so far.
The bill was passed with almost unanimous votes and is left to get President Volodymyr Zelensky to sign off.
Ukraine will be the fifth country to set up governing norms for digital currencies following El Salvador’s adoption of Bitcoin as legal tender.
The Law Will Bring Regulation In Crypto Space:
Ukraine has not moved so far as El Salvador. They have legalised and regulated the financial asset but have not given Bitcoin the status of legal ‘tender’ as such.
This means the country’s new law does not consider Bitcoin, or any other cryptocurrency, in the same position as the country’s national currency, the hryvnia.
According to the Ukrainian draft bill, the law will regulate “legal relations arising in connection with the turnover of virtual assets in Ukraine, define the rights and obligations of participants in the virtual assets market, and the principles of state policy in the field of virtual assets”.
In short, the law will protect the virtual assets owners and exchange platforms from fraud in grey areas.
Previously, the trading of crypto assets had no clear legal viabilities. It was neither legal nor forbidden. While buying and exchanging cryptos was allowed, but the law of land had no such framework to protect people in cases of fraud or if something went wrong.
Authorities have usually considered digital currencies and cryptos as a “scam,” according to the Kyiv Post newspaper, and have raided crypto-related firms and even confiscated equipment “without any reasons.”
Future Of Cryptocurrency In Ukraine
The cryptocurrency market will be available to businesses and investors by 2022, a spokesperson from the Ministry of Digital Transformation told the Kyiv Post. This draft law plays an essential role in determining the regulatory future of crypto in the country.
Ukraine’s Minister of Digital Transformation Mykhailo Fedorov also recently said the country should modernize its payment system to pave the way for the National Bank to issue digital currency.
Many countries are making efforts to regulate cryptocurrencies. India is also one among such countries that are chalking out regulatory laws for such asset classes.
Besides Ukraine and El Salvador, Cuba and Germany have also made headway.
Panama is potentially the next country to regulate cryptos as it is currently considering a draft law.