Ukrainian Parliament approves in second discussion draft law to regulate the use of cryptocurrencies in the country
Ukrainian Parliament approves in second discussion draft law to regulate the use of cryptocurrencies in the country By Angel Di Matteo @shadowargelThe

measure represents a step forward for Ukraine, thereby establishing guidelines for the trading, declaration and use of cryptocurrencies within the nation.

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Ukraine’s parliament today approved today in second discussion a bill that seeks to regularize and legitimize the use and trade of cryptocurrencies within the country

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With a total of 276 votes in favor, the Virtual Assets

Bill was approved by a majority of the country’s parliamentarians, which means that it is one step closer to becoming law, which would establish a first effective regulation applicable to cryptocurrencies within the nation, establishing guidelines for interested parties to trade such assets and declare the corresponding taxes.

Several personalities from the crypto ecosystem congratulated the measure, most notably Binance

CEO Changpeng Zhao (CZ), who called this a great effort to bring greater regulatory clarity to digital currencies, which will greatly benefit the local and international space.

On the crypto bill in Ukraine

Regarding

the proposal that passed its second discussion, in addition to establishing guidelines for the marketing and taxation of cryptocurrencies, it would also allow international Blockchian-based

product and service companies to register and establish their operations in that country.

Similarly, just as it establishes obligations and frameworks for action for users and companies in relation to digital currencies, it also establishes principles aimed at protecting consumers, as they will have the right to seek judicial protection in order to protect their cryptocurrencies and investments within the sector.

As such, the law proposes that the Ministry of Digital Transformation of Ukraine will be the one to regulate the cryptocurrency market, although it also empowers the National Bank of Ukraine and the National Securities and Exchange Commission

to do the corresponding supervision and provide support from their operational areas.

It is worth noting that the bill also proposes the creation of a new regulatory body, the cu

al will be known as the National Virtual Assets Regulatory Service (NVARS), whose main responsibility will be to issue the appropriate licenses to crypto companies and Blockchain interested in operating within Ukraine.

Greater benefits for users

Regarding the benefits for cryptocurrency users within the country, Deputy Minister of Digital Transformation for IT Development Alex Bornyakov noted that having this first legal framework would bring much more transparency to operations within the local market, adding:

“Cryptocurrency owners will have several advantages… With a legal basis for these assets, they will be able to at least, protect their virtual fortune in case something happens. They will also have every right to exchange their digital currencies and declare them, a process that will be completely transparent.”

He also included within this group all those interested in paying for goods and services using their cryptocurrencies, who will be able to do this legitimately without conflicting with existing laws.

Following in the footsteps of El Salvador?

The approval of this bill in second discussion comes a day after the law that makes Bitcoin legal tender in El Salvador officially came into force, a measure that credits the Central American country as the first to take such a step internationally.

Although the measure generated controversy and heated debates within the country, many analysts and enthusiasts believe that this step can have great repercussions for the ecosystem of digital currencies and for the country, so they do not rule out that other nations follow these steps even from a different approach.

In relation to the above, one of the most notable comments was that of former NSA advisor Edward Snowden, who commented as follows:

“Today, Bitcoin was formally recognized as legal tender in its first country. Beyond the headlines, there is now pressure on competing nations to acquire Bitcoin, even if only as a reserve asset, as its design greatly incentivizes early adoption. Newcomers may regret having hesitated.”

For his part, IOHK CEO and lead developer of Cardano, Charles Hoskinson, added:

“In the coming years, many more nation-states will be using cryptocurrencies as part of their monetary policy (either as reserves in their central banks or using cryptocurrency rails for central bank settlements).”

Recommended reading

Source : <a href=”https://finbold.com/ukraine-on-course-to-legalize-bitcoin-as-parliament-passes-crypto-bill-2nd-reading/”>Finbold, Twitter

Versión de Angel Di Matteo / DiarioBitcoin

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