Now the Ukrainian crypto industry will no longer be regulation-less as finally, the country’s Parliament has approved the crypto law which provides for rules and policies for the governance of crypto operations. Under the law, virtual currencies have been defined to mean “intangible goods”. However, “crypto” has been specifically denied to be treated as “legal tender”. The law would also be applicable upon the crypto business and exchanges or anyone involved or associated with crypto activities.
Finally, the activities and operations with regard to crypto, have been legalized by legislation in Ukraine. The event took place when the Ukrainian Parliament in Kviv provided the regulation to the local crypto market which was regulation-less for long. As per the local news outlets, the Ukrainian Parliament has successfully accepted the legislature on virtual currencies/assets. The law was pending approval for quite some time and, before its final approval, it was reviewed twice.
The law is going to cover entire Ukrainian crypto industry as well as the activities and operations therein. The virtual currency law was passed by the majority vote and obtained a total of 276 votes. The total number of the Parliamentarians present in the Senate session were 376. However, there were some votes casted against the motion but there numbers were only 6. It then became obvious that the law would be passed because it secured majority votes.
But, for the time being, the law will await its implementation which is likely to take place after the country’s tax laws are amended. Both laws are inter-connected because the tax law also wants to provide for crypto taxation. Therefore, it is essential that before implementing the virtual currency law, the tax laws are amended accordingly. In fact, the amendment in tax law too is under consideration by the Ukrainian Parliamentarians. In the upcoming sessions, it is expected that the members would be asked to cast their votes in respect of tax law amendment. Until then, the implementation of virtual currency law will have to wait.
As for the virtual currency law, it was indicated by the Parliamentarians briefly that they have defined “virtual assets”. They claimed that “virtual assets” shall be recognized as “intangible goods” and could be of either kind i.e. secured or un-secured. But the Parliaments totally disregarded to treat virtual assets as “legal tender”. This means that virtual currencies cannot be used by anyone in Ukraine as “payment” against services of any kind, including purchase.
There is another very important definition titled “financial virtual assets” provided in the newly passed crypto law. “Financial virtual assets” have been defined to mean digital assets which are backed by locally registered companies. However, these types of assets will be specifically regulated and governed by the country’s central bank i.e. National Bank of Ukraine.