Ukraine is well on its way to legalizing cryptocurrencies. Today, the parliament passed the second reading of the law on virtual assets. Thus, not only users will benefit, as they will be entitled to judicial opportunities, but also blockchain companies, which will then be able to register and operate in the country.
Ukraine passes second reading of cryptocurrency legalization bill
In Ukraine, the parliament has now passed the second reading on the draft law on bitcoin legalization. The bill, which was passed by 276 MPs, allows cryptocurrencies to be regulated and also provides holders with the ability to trade them and declare them legally. AIN reported that. Thus, if the law is approved, international blockchain companies will also have a great advantage. They will be able to register and operate in the country. So far, this is not possible.
But the bill also aims to ensure that market participants benefit from legalization. They will be entitled to judicial and other avenues that will provide them with protection of their digital assets. Moreover, the bill also has the formation of a new regulatory body in its agenda. The National Virtual Assets Regulatory Service (NVARS), will then take care of granting licenses to crypto companies in Ukraine. At the same time, the Financial Action Task Force will conduct financial monitoring of digital currencies.
However, in the process, the National Bank of Ukraine as well as the National Securities and Stock Market Commission can also oversee the sector to a certain extent. The Ministry of Digital Transformation then gets the job of regulating cryptocurrencies, as can also be seen in the law.
Legalizing Bitcoin & Co. has some benefits for Ukraine
Some officials of the parliament have stated that this law will bring numerous benefits to the country. For example, Alex Bornyakov, the Deputy Minister of Transformation for IT Development made the following comments:
Cryptocurrency holders will have several benefits. Since there will be a legal basis for cryptocur…At least they can protect their virtual assets in case something happens. They will also be entitled to exchange and declare crypto assets. This process will be completely “transparent”, he added.
Furthermore, he added that with the law, there would also be a natural market of intermediaries so that goods can be paid for with cryptocurrencies, according to the legislation, of course.
Just a day after El Salvador introduced cryptocurrencies as a means of payment and Panama is considering it, this news comes from Ukraine. El Salvador’s move has thus inspired other jurisdictions, making them think about legalizing cryptocurrencies.
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