Ukraine Regulates Cryptocurrencies: A New Era for Digital Assets

NEW DELHI: Ukrainian parliament Verkhovna Rada passed a law that regulates cryptocurrencies and ensures security of users. It now awaits the nod of President Volodymyr Zelenskyy.
After El Salvador and Cuba, Ukraine has become the latest country to bring a law around cryptocurrencies. Cryptocurrency trading was not illegal in the country even before the legislation however there were no laws around it.
However, Ukraine will not allow use of Bitcoin as legal tender alongside national currency like El Salvador. The cryptocurrency legislation of Ukraine has the following provisions:
* The law allows citizens to own, exchange and trade cryptocurrencies on local or foreign platforms as long as they are registered in Ukraine.
* Those participating in the crypto market will be able to independently determine the value of virtual assets, open bank accounts to settle transactions, and also seek judicial protection.
* Crypto service providers will have to follow the country’s anti-money laundering regulations.
* The new law recognizes virtual assets as both secured and unsecured intangible goods.
* The law mandates that the term ‘Financial virtual assets’ be issued by registered entities.
* Cryptocurrencies will not be accepted as legal means of payment for goods and services.
The assets that are backed by digital currency will be regulated by the country's central bank National Bank of Ukraine (NBU).
* The derivative or security asset will be regulated primarily by the National Stock market commission.
According to reports, Ukraine’s daily turnover in digital assets is to the tune of nearly $37,000. The government is also upbeat about the country's growing crypto economy.
Ukraine’s legalisation of cryptocurrency is only proof of the growing popularity of the digital currency around the world.
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