In an official circular dated March 16, Ukraine has announced that country President, Volodymyr Zelenskyy, has signed the first crypto framework.
Crypto now Legal
The translated note states that the sector has now become legal, allowing both foreign and Ukrainian cryptocurrencies exchanges to operate legally in the country. After the signing, the release notes, “It creates conditions for launching a legal virtual asset market in Ukraine. The new market will be regulated by the National Securities and Stock Market Commission.”
Moreover, the framework is expected to open avenues for banks and financial institutions to partner with crypto companies.
The development comes on the backdrop of the Ukraine-Russia crisis that affected lives while draining the war-hit zone out of resources. But, millions of dollars in crypto donations have poured in for Ukraine as rescue efforts have been underway. Recently, Ukraine also partnered to launch an “Aid for Ukraine” website to accept donations in cryptocurrencies, including Bitcoin, Ether, Tether, and Dogecoin.
Therefore now, apart from determining the legal status of crypto assets, the framework will also look at the classification and ownership of virtual tokens. Under the National Bank of Ukraine and the National Securities and Stock Market Commission, the country aims to maintain a list of virtual asset service providers and the conditions for their registration.
Responsibilities on the National Securities’ Regulator
And, the statement also looks at the implementation of financial monitoring measures in the field of virtual assets moving forward. Apart from that, the securities regulator will supervise the state policy of virtual assets. This essentially means that the watchdog will keep an eye on the turnover of virtual assets, and permits to virtual asset service providers.
All in all leaving the National Securities and Stock Market Commission responsible for the “regulation, supervision and financial monitoring in this area.”
Specialized Law
These guidelines come in addition to the previously stated rules by the Ministry of Digital Transformation. But, the release now calls this the “specialized law,” adding that “the Ministry of Digital Transformation is also actively working on amendments to the Tax and Civil Codes of Ukraine for the full launch of the virtual asset market.”
The law will come into force as soon as it enters the Law of Ukraine with amendments to the Tax Code of Ukraine that will take care of the taxation of transactions with virtual assets. It wouldn’t be wrong to say that the country has now established the law to bring crypto out of the grey area of legality after it was first introduced as a Draft Law in 2020.
“The President’s signing of this Law is another important step towards bringing the crypto sector out of the shadows and launching a legal virtual asset market in Ukraine.”
The updated virtual assets law was sent to the President for signing on 11 March and it received his assent on 15 March.
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