Ukraine issued a decree on the legalization of cryptocurrencies
Ukraine issued a decree on the legalization of cryptocurrencies Ukraine issued a decree on the legalization of cryptocurrencies

Ukraine’s parliament has passed legislation that legitimizes and regulates cryptocurrency assets in the country.

The bill legalizing cryptocurrencies passed its second reading yesterday (September 8). Until now, cryptocurrencies and digital tokens have been in a sort of regulatory limbo in Ukraine.

According to theKyiv Post

, 276 Ukrainian lawmakers voted in favor of virtual asset law 3637, which now paves the way for a regulatory framework and wider acceptance.

Once passed by President Volodymyr Zelensky, the new legislation will provide protection for investors who invest their capital in digital assets and entrust it to exchanges.

Ukraine opens to cryptocurrencies

According to the Ministry of Digital Transformation, Ukraine intends to open the cryptocurrency market to companies and investors by 2022. However, before this can happen, the parliament must pass a set of laws and amend the Tax Code and Civil Code. Experts stated

:

“The law defines virtual assets as intangible assets expressed in the form of electronic data. It also clarifies what a wallet for virtual currency and a private key are – these terms have never been used in Ukrainian legislation.”

In the current situation, cryptocurrencies cannot be used as payments for goods or services, although traders and investors can buy and sell them on exchanges in the country. The new law will allow cryptocurrency-related companies to operate legally in Ukraine. The government plans to create another regulatory body that will be responsible for issuing companies with permits to operate.

According to Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation, cryptocurrency trading is very popular among the country’s citizens, with a daily turnover of around $37,000. He added that “only a few countries in the world have legalized digital assets – Germany, Luxembourg, Singapore. Ukraine will be one of them”.

Oleg Kurchenko, CEO of cryptocurrency exchange Binaryx, commented that regulating the market “will reduce the stereotypical approach to cryptocurrencies and help them become normal financial instruments.”

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