Ukraine Finally Legalizes Cryptocurrencies

Ukraine had been in the spotlight for a few weeks due to tensions with Russia but now it is in highlights because of a new advancement. Ukraine’s parliament has once again passed the bill to legalize the trading of Bitcoin and other cryptocurrencies.

This effort was made a few months ago as well but the Ukrainian President, Volodymyr Zelenskyy, vetoed the bill at that time due to some concerns. Volodymyr Zelenskyy had opined that his country is not in a position to create a separate regulatory body for cryptocurrencies. Now the parliament has reworked the bill as per recommendations of the president.

This time the bill has been passed almost unanimously as only two votes were cast against the bill. In the bill, the cryptocurrencies are given the status ‘permissive’ so they will not be used as legal tender. The bill is a primary step to developing a regulatory framework for all virtual assets. The law still requires some additions and refinements as the tax rules and exempts are not made clear yet.

The bill has not only laid the legal groundwork for financial institutions and regulators but also has granted some rights to citizens as well by defining rules for cryptocurrency dealers and exchanges. These rules will secure cryptocurrency buyers and the number of scams will also decrease significantly. The bill is an effort to bring well-defined rules so that the virtual assets are traded legally and investors are provided protection as well.

Ukraine’s Minister of Digital Development has said that as per the bill, National Securities Commission will play the role of a regulator for all virtual assets. The commission will set fines for different kinds of violations so that everyone abides by the laws mapped out by this bill. The Digital Transformation Department has a lot of enthusiasm regarding this bill and wants to make Ukraine a leader in the global digital currency market by using advanced technology so that the country witnesses a speedy shift towards virtual assets.

Now foreign companies will try to tap this new market as soon as possible because now Ukrainians are legally allowed to sell and purchase virtual assets. Previously the National Bank of Ukraine had a harsh stance regarding cryptocurrencies as it referred to them as an asset with no real value.

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