Ukrainian Government Legalized Cryptocurrency

Wednesday, September 8, 2021
Ukrainian Government Legalized Cryptocurrency

According to the head of the Ministry of finance, the daily turnover of virtual assets in Ukraine is $37 mln. But all this is in the shadows. Now Ukrainians will be able to legally exchange cryptocurrencies and declare them

At a meeting on September 8, the Ukrainian government passed in the second reading draft law No.3637 on virtual assets, which will become the basis for the formation of state policy on cryptocurrencies.

The draft law provides for granting virtual assets a legal status — this should provide market participants with the right to judicial and other ways of protecting the rights to such assets. That is, anyone in Ukraine will be able to tokenize (express in digital, legally significant form) the rights of claim on the asset. In addition, international exchanges where virtual assets are traded will be able to operate legally in the country.

The adopted law will allow Ukrainian blockchain companies to legalize their own business processes and work officially with the banking system. In addition, citizens who receive income from transactions with virtual assets will be able to do so as well.

According to the minister, the market of virtual assets is an additional point of growth of the digital economy in Ukraine.

The Ministry of digital transformation will deal with the market of virtual assets. All service providers involved in the circulation of virtual assets in Ukraine will be required to undergo state registration and to report in accordance with the procedure and standards to be developed by the Ministry of digital transformation. The agency must also create a State register of providers of such services.

What does this mean? Businesses will be able to work officially and protect their own virtual assets from possible abuse. The country will get additional tax revenues to the budget, which will pay crypto companies.

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