Ukraine’s parliament, the Verkhovna Rada, has adopted a virtual asset bill legalizing and regulating cryptocurrency.
According to a local report, Ukraine has passed a law that makes cryptocurrency and other digital assets legal in the country. 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.”
Despite the win for crypto, they still can’t be used to pay for goods and services. It does, however, allow for blockchain companies to legalize individual business processes and work directly with the current banking system. Citizens can also freely buy and trade cryptos as things currently stand. The hryvnia remains the only legal currency.
Next steps for Ukraine
Before the bill passed, digital currencies have lived in a bit of a gray area in Ukraine. Neither legal nor illegal due to the lack of laws defining what a cryptocurrency is. The buying and selling of digital assets were done, but there was no legal protection from the courts if something went awry. The bill still has one final hurdle to jump before it officially becomes a law. It must be signed by President Volodymyr Zelensky.
Speaking with the Kyiv Post, a spokesperson for the Ministry of Digital Transformation said that Ukraine plans to open the cryptocurrency market for both businesses and investors by 2022. The spokesperson added that parliament still has to pass laws that amend the Tax Code and Civil Code before the market can be opened.
According to the bill, cryptocurrency-related businesses can work in Ukraine, but must meet a few prerequisites. Any crypto company looking to set up shop in Ukraine needs to have a stellar reputation and prove they can be transparent with officials. Additionally, a fee of $3,000 must be paid along with any taxes incurred during operation. Ukraine hopes these steps will keep money laundering and financial terrorism to a minimum.
If President Zelensky signs the bill into law, it will be the job of the Ministry of Digital Transformation, the National Bank of Ukraine, and the National Securities Commission to handle the enforcement of regulations according to the law. Ukraine has also stated its intention to create a new regulator to handle cryptocurrency companies looking for permits.
Despite the win for crypto, they still can’t be used to pay for goods and services.
To me I see this as a gradual process needed to ensure the circulation and general usage of crypto in all the nooks and crannies of the country before it can serve a complete legal tender for purchase of goods and services, even in the remote areas, I means for exchange and transactions barriers will be effected between the people and the government for easy transactions with total free, fare within a transparent mode.
The bill still has one final hurdle to jump before it officially becomes a law. It must be signed by President Volodymyr Zelensky.
Since the major function of the parliament is to fully represent the masses and pass bill, they understand the evolving trend of Cryptocurrency in this generation and sees it as an opportunity to developments as more countries now adopts it and the level of the young adults (youths) in the crypto world can not be overemphasized, this is a country that understand the demands of the youths.
Am well convinced in due time the president will sign the bill into law, they sees any opportunity for development and quickly tap into it rather than castigating iton wrong motives. I wish other countries learn and follow the bold step taken by the Ukrainian perliament and have a second thought.
