The Ukrainian Parliament just adopted a new law recognizing and regulating foreign and domestic cryptocurrency exchanges within the country. Ukraine hopes that this new law will attract foreign cryptocurrency exchanges.
This is the first time that Ukraine has a law legally recognizing cryptocurrency. The legislation is based on the current standards developed by the intergovernmental policy-making organization, Financial Action Task Force on Money Laundering (FATF).
The Ministry of Digital Transformation in Ukraine will be the one to oversee the implementation of the new law on digital asset regulation. The body will likewise guide the industry’s growth to ensure it is in keeping with international standards.
Anastasia Bratko of the Ministry of Digital Transformation talked more about the newly implemented law. Bratko pointed out that the law will allow companies to launch their digital asset markets, and banks can now open accounts for crypto companies.
“Ukrainians will also be able to declare their income in virtual assets,” she said. Bratko further ensured judicial protection regarding the rights of virtual asset owners.
For virtual asset service providers (VASPs), they must have an impeccable business reputation to be granted to make transactions through the new law. They will also be required to disclose their ownership structure to identify their ultimate beneficial owners.
On hopes of Ukraine that the new law will attract foreign exchange to the Ukrainian market, Oleksandr Bornyakov, deputy minister of Digital Transformation of Ukraine, said: “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.”