The Ukrainian government has so far laid down some ground rules for the cryptocurrency market, (Ukraine Population: 43,422,362) the fifth country to do so in as many weeks, following El Salvador’s move to adopt Bitcoin as legal tender, showing that governments around the world are realizing bitcoin’s staying power. The bill was passed in a near-unanimous vote on Wednesday and it now heads to the desk of Ukraine President Volodymyr Zelensky. Ukraine’s parliament has adopted a new law that legalizes and regulates cryptocurrency and other virtual assets like tokens.
Ukraine Draft Law on Bill on Virtual Assests.
According to a local report, Bill No. 3637 on Virtual Assets, gives Ukraine the ability to now legally regulate digital currency. According to the bill draft, “This Law regulates legal relations arising in connection with the turnover of virtual assets in Ukraine, defines the rights and obligations of participants in the virtual assets market, the principles of state policy in the field of virtual assets.”
The crypto market has won, but they can’t be used for payment. Blockchain companies can, however, legalize specific business processes and work directly with the current banking system. Currently, citizens can also freely buy and trade cryptos. The hryvnia remains the only legal currency. Locals were allowed to buy and exchange virtual currencies, but companies and exchanges dealing in crypto were often under close watch by law enforcement. According to the Kyiv Post, authorities have taken an aggressive stance toward virtual cash, seeing it as a “scam,” raiding crypto-related businesses, and “often confiscating expensive equipment without cause.”
Security Service of Ukraine (SBU) blocked a network of so-called “clandestine cryptocurrency exchanges” in Kyiv in August. The SBU claimed these exchanges were facilitating money laundering and providing anonymity of transactions.
Among the new provisions of the law measure to prevent fraud against those who own bitcoins and other cryptocurrencies, and in a first for the Verkhovna Rada, the lawmakers have taken aim at defining core terms associated with cryptocurrencies. If signed by the president, virtual assets, digital wallets, and private keys are terms that will be enshrined in Ukrainian law.