At the time of writing, there are approximately 20 thousand cryptocurrencies in the world, with a total capitalization of almost 2 trillion dollars. A developed market for virtual assets is a necessary component of any state’s economic progress.
On February 17, President Volodymyr Zelensky signed the Law of Ukraine “On Virtual Assets”, which was adopted by the Verkhovna Rada (the unicameral legislature with 450 people’s deputies). This law establishes the groundwork for the establishment of a legal market for virtual assets in Ukraine. The National Commission for Securities and Stock Market will regulate the new market. Read the article to find out more about the topic.
Previously, President Volodymyr Zelensky rejected the legislation on the crypto sector and returned it to the Verkhovna Rada with 21 amendments. The Committee on Digital Transformation endorsed all of Zelensky’s ideas and advised deputies to accept the measure in general. For now, the legislation outlines the National Bank of Ukraine, the National Commission on Securities and Stock Market’s obligations in the realm of virtual asset circulation. Furthermore, the report states that Ukraine would establish a state registration of services providers connected to the circulation of cryptocurrency.
What does it mean?
Foreign and Ukrainian cryptocurrency exchange platforms can operate on the government level, according to the Ministry of Finance. Aside from that, banks may create crypto accounts to provide their customers with cryptocurrency services. Furthermore, the legislation also states that the government provides legal protection for virtual asset rights. In turn, the National Commission on Securities and the Stock Exchange will develop and execute a special policy on virtual assets. In addition, the authority establishes the method for the circulation of virtual assets and authorizes cryptocurrency exchanges and trading platforms. This way, the state-level watchdog oversees the financial surveillance of crypto-assets. In general, cryptocurrency assets are now a fully legal component of the Ukrainian economy.
However, this is fundamentally important legislation that defines the legal status of virtual assets and gives legal protection to market participants. As a result, international crypto businesses are now legal and protected. According to the Verkhovna Rada, the volume of virtual asset transactions in Ukraine is close to 150–200 million dollars per day, with a virtual asset capitalization of over 2 billion dollars. According to the Ministry of Finance, the legislation is based on actual norms of the Financial Action Task Force on Money Laundering (FATF). They provide guidelines for suppliers of services linked to cryptocurrency circulation.
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