The Ukrainian Parliament, the Verkhovna Rada, has adopted a virtual asset legislation regulating foreign and domestic cryptocurrency exchanges operating from within the country.
Yesterday, the Ukrainian Parliament adopted the draft law “On Virtual Assets,” Bill No. 3637, which legally recognizes cryptocurrency in the country for the first time and gives Ukraine the ability to 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 legislation is based on the existing standards developed by the intergovernmental policy-making organization, Financial Action Task Force on Money Laundering (FATF). The Ukraine’s Ministry of Digital Transformation will be tasked with overseeing the implementation of the new virtual asset regulation and guiding the industry’s growth, in adherence with “international standards.”
Despite the passing of the bill, 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.