The crypto bill was previously returned for revision to create a new regulatory body for crypto oversight. The bill that makes cryptocurrency usage, trading, and investment legal in the country passed by 272 legislators makes the National Securities Commission its regulator.
The Ukrainian parliament has voted to legalize cryptocurrencies such as Bitcoin amid growing fears of imminent war with neighbor Russia. Parliament passed the Virtual Assets Bill, which now gives cryptocurrencies legal status in the country. However, unlike the case in El Salvador, cryptocurrencies will not be recognized as legal tender.
Specifically oversee the turnover of virtual assets backed by currency valuables
According to the official statement, the Ukrainian Rada passed the legislation during the second reading of the plenary session on Thursday, February 17, 2022, with 272 out of 365 lawmakers supporting the bill. The lawmakers specifically approved several bill recommendations by President Volodymyr Zelensky, which removed the country’s Ministry of Digital Transformation from the list of authorities overseeing the cryptocurrency market.
Therefore, the updated version of the bill establishes the National Securities and Stock Market Commission of Ukraine, or NSSMC, and the National Bank of Ukraine, or NBU, as two significant regulators on the crypto market. As per the bill’s provisions, the NBU will specifically oversee the turnover of virtual assets backed by currency valuables. The NSSMC will supervise other types of digital assets, including derivative financial instruments, and regulate virtual asset service providers.
Ukrainians will have convenient and secure access to the global market for virtual assets
Digital Transformation minister Mykhaylo Fedorov expressed his gratitude and satisfaction with the newly passed bill. He opined that the new law would offer digital business significant opportunities besides enabling platforms and cryptocurrency exchanges more free trade. According to Fedorov, the law will allow more entrepreneurial ventures to flourish in the country surrounding the crypto and blockchain space. It will also enable more capital investments to flow into this industry. Fedorov said in a statement:
“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.”
Welcoming the latest changes in the cryptocurrency law, Ukraine’s deputy minister of Digital Transformation Alex Bornyakov stated:
“Shrinking regulatory bodies can actually significantly accelerate crypto market launch. To ensure the growth of the crypto industry, we are ready to cooperate with The National Commission on Securities and Stock Market. Ultimately, real change in any market is driven by collaboration.”
The virtual asset market can become a powerful digital economy sector
Ukraine has created a niche for itself among the five leading countries globally, with many cryptocurrency users. The country has a well-developed society of blockchain developers, and several Ukrainian crypto startups are growing. The Deputy Minister of Digital Transformation for IT Development Oleksandr Bornyakov said:
“Today, the potential of the global crypto industry is determined by billions of investments. Its growth rate is ahead of traditional sectors of the economy. In Ukraine, the virtual asset market can become a powerful digital economy sector. Thanks to the adopted law, we have every chance to be a leading country for business development in this innovative field.”
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.
