Bitcoin is now legal in Ukraine after the country’s parliament approved a bill in the final reading that complies with the president’s recommendations. The country, however, has not crafted bitcoin a legal tender.
The new law provides an additional opportunity for our country’s business development. Foreign and Ukrainian crypto organizations will be able to operate judicially, and Ukrainians will have appropriate and reliable access to the worldwide market for virtual assets, Ukraine’s minister of digital transformation, Mykhaylo Fedorov, declared in a statement.
According to an official statement, the Ukrainian parliament passed the new Law on Virtual Assets on Thursday exceeding 270 votes. The bill provides the specifications of the requirements that Bitcoin service providers, like exchanges, must follow and authorizes fines for violations of the law’s provisions, as well as establishing that the cryptocurrency market is regulated by the country’s National Securities Commission.
According to the statement, Ukraine’s Securities Commission will be in charge of issuing authorizations to Bitcoin and cryptocurrency service providers, as well as market supervision and financial monitoring.
A similar cryptocurrency bill was introduced by Ukraine in September, however, President Volodymyr Zelensky dismissed it the following month, claiming that the country couldn’t afford to establish a new regulatory body solely for Bitcoin and cryptocurrency.
President Zelensky then reinstated the bill to the Ukrainian parliament, along with his proposal that the burgeoning sector is overseen by existing regulators. The recommendations of the President have been taken into account and the Parliament has passed the amended bill.
Legislation approves Enterprise
Serhiy Tron the founder of White Rock Management and the Parea Foundation international fund said to Bitcoin Magazine that the Law on Virtual Assets is mostly a framework law requiring further significant refinements, like modifications to the tax code. However, the document became a predominant signal to the international community after the National Bank of Ukraine made an official statement that digital currency is a monetary surrogate with no real value.
Tron stated that the Ministry of Digital Transformation of Ukraine intends in making the country a leader in the worldwide Bitcoin and cryptocurrency market, which is facilitated by the new law.
He added that through the establishment of a high-tech, innovative cryptocurrency market with clear rules, the country is anticipating the rapid arrival of crypto investors from around the world.
Ukraine’s Bitcoin bill allows the peer-to-peer currency to move out of the “grey” zone by establishing clear legislation that outlines how the asset should be treated legally as well as how institutions should operate in terms of investor protection and commitments.
According to Tron, bitcoin exchanges will now be able to operate under clear rules, and citizens’ assets will be better protected from fraud or misuse by service providers, as well as custodians.
Through the adoption of the Law on Virtual Assets, a clear signal is sent to the worldwide community that cryptocurrency is legal in Ukraine, Tron explained to Bitcoin Magazine. The opportunity for the legal development of business in Ukraine will entice crypto-investors from around the world to our country.
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