Ukrainian President Volodymyr Zelenskyy has signed into law a bill that legalises the cryptocurrency sector and establishes a more favourable regulatory environment for virtual asset markets in the war-torn nation.
Ukraine had previously passed laws that recognised virtual assets, provided some consumer protections and clarified their tax status, but this new law goes much further towards creating a fully fledged legal framework for crypto:
Defined Legal Status, New Regulatory Body
In a statement released by the Ukrainian government on March 16 describing the new law, its main effects will be to:
- determine the legal status and ownership rights of virtual assets;
- appoint the National Bank of Ukraine and the National Commission on Securities and Stock Market as the regulators; and
- determine who can provide virtual assets and handle registration.
Establishing the National Commission on Securities and Stock Market as the regulator of the crypto sector means that virtual assets will now be treated much more like traditional securities.
The Ukrainian government says the new regulator will be given responsibilities including:
- shaping policy in the field of virtual assets;
- issuing permits to virtual asset service providers; and
- conducting regulation, supervision and financial monitoring of virtual assets.
Crypto Seen As Source of Opportunities
The new law follows a massive influx of crypto donations into Ukraine from around the globe, with over US$100 million already donated.
But it’s not only crypto donations that have encouraged Ukraine to accelerate its adoption of crypto – the sector is a seen as a source of significant economic opportunities by the Ukrainian government.
In a tweet following the signing of the new law, Alex Bornyakov, Ukraine’s Deputy Minister of Transformation, praised the move:
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