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Bitcoin and Cryptocurrencies Are Now Legal in Ukraine

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The Verkhovna Rada (Supreme Council of Ukraine) passed a virtual assets law on February 17th, 2022 that allows the country’s citizens to trade Bitcoin and other cryptocurrencies. Out of the 450 deputies, 272 voted to pass the law. 

In a prior bill from October of 2021, President Volodymyr Zelensky vetoed parliament’s cryptocurrency bill citing that there was not enough money in the budget to create a new independent regulatory body to regulate the industry. 

Within the new bill, Zelensky’s suggestions for having existing regulators regulate Bitcoin and cryptocurrencies were included. The National Securities Commission (NSC) is one of the chosen regulatory bodies that will oversee the industry.

Their responsibilities include:

  • Develop and implement policies for Bitcoin and cryptocurrencies.
  • Determine regulations for various transaction types.
  • Provide licenses and a legal framework for Bitcoin and cryptocurrency service providers.
  • Delegate the supervision and financial monitoring of cryptocurrency entities.

Additionally, the Ministry of Finance team assisted in drafting the “Law on Virtual Assets” and will also be working on amendments for the country’s Tax and Civil Codes of Ukraine. Their aim is to make the regulatory environment favorable toward Bitcoin and cryptocurrency use.

Deputy Prime Minister (Minister of Digital Transformation) Mikhail Fedorov stated the importance of providing clear legal guidelines for businesses. "The new law is an additional opportunity for business development in our country. Foreign and Ukrainian crypto companies will be able to operate legally, and Ukrainians will have convenient and secure access to the global market for virtual assets,” he said.

Fedorov also explained the protections that are required for all parties involved by saying, “Market participants will receive legal protection and the opportunity to make decisions based on open consultations with government agencies. There will be a transparent mechanism for investing in a new asset class".

Declaring Bitcoin or other cryptocurrencies recognized as legal tender was not included in the bill.


 

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Deniz Saat is an IT services specialist, technical writer and editor for BTC Times. His mission is to onboard as many people as possible into the Bitcoin overlay through education and content creation.

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