The Ukrainian Parliament has officially adopted a draft law “On Virtual Assets” effectively legalizing virtual assets, which includes cryptocurrencies, within the country’s economic and commercial jurisdiction.The new law was adopted after a second reading with 276 votes within the Ukrainian Parliament. With the law’s implementation, Ukraine is now open for business with firms representing the crypto and blockchain space, both from its local developments and from international firms seeking to start their business in the country.

According to an exclusive communication shared with Crypto Daily, the determination of crypto’s legal status provides protection to both users and market participants, protecting everyone from possible abuse. The law was formed based on current regulatory standards regarding transactions within virtual assets developed by the Financial Action Task Force on Money Laundering (FATF),  an inter-governmental policy-making body. The law is also aimed at generating additional tax revenue for Ukraine, with taxes paid by crypto firms.

“The virtual asset market is an additional point for the growth of the digital economy in Ukraine. The legalization of virtual assets creates the preconditions for the launch of this innovative market in Ukraine. Soon, foreign and Ukrainian services related to the circulation of virtual assets, in particular, crypto exchanges, will be able to officially operate in our jurisdiction. The development of a new industry will allow attracting transparent investments and will strengthen the image of our country as a high-tech state,” shared Mykhailo Fedorov, Vice Prime Minister at the Ministry of Digital Transformation of Ukraine.

Ukraine’s Ministry of Digital Transformation has been assigned as the responsible official body for the implementation of state policy of the new market’s development. With an official agency working to contribute to the adaptation of Ukrainian legislation on the circulation of crypto and virtual assets with international standards, the Ukrainian government hopes to be able to protect the rights of market participants and investing users alike.

“The legalization of virtual assets will contribute to the active registration of crypto companies in Ukraine. In particular, the adoption of specialized legislation is going to stimulate the attraction of foreign exchanges to the Ukrainian market. It will become a powerful incentive for the further development of the crypto-sphere in Ukraine. Banks will open accounts for them and conduct transactions with a new class of assets. I am sure that society, business and the state will benefit from the legalization of the new sector of the economy,” shared Oleksander Bornyakov, Deputy Minister at the Ministry of Digital Transformation of Ukraine.

The new law will oversee the disclosure of ownership structure from relevant service providers, a process that would help identify who and how the service provides benefits to the user community. The new legislative measure will also introduce internal procedures for financial monitoring as a way of countering and preventing possible abuse and money laundering.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.