Work is underway in Ukraine to update the legal acts applicable to cryptocurrencies in order to bring the country’s legislation in line with European standards. Several government agencies in Kiev are preparing changes to a bill “on virtual assets” signed earlier this year.
Ukraine transfers European crypto regulations into national law
The “On Virtual Assets” law, the main legislation pertaining to the crypto space in Ukraine, will be amended in accordance with the provisions of the European Union’s Market for Crypto Assets (MiCA) legislative package.
Since the Eastern European nation has been granted candidate status for EU membership, Ukraine needs to bring its domestic legislation into compliance with European standards, explained the country’s Ministry of Digital Transformation, as cited by crypto news outlet Forklog.
The law was first adopted by the Ukrainian parliament a year ago, but President Volodymyr Zelenskyy returned it with several recommendations: the Verkhovna Rada passed a revised bill in February this year, and Zelenskyy signed it into law in March Zelenskyy signed it into law in March.
It is now clear that the law on virtual assets (VA) may be subject to significant changes. The National Securities and Stock Market Commission (NSSMC), the National Bank of Ukraine (NBU), and industry representatives are also working on amendments. The Ministry of Digital Affairs elaborated.
The amendments may even affect the classification of adopted virtual assets. The conditions for initial VA offerings will also be reviewed.
A new version of the law “On Virtual Assets” is likely to be submitted towards the end of 2022.The NSSMC stressed that the update is necessary to develop rules for the taxation of cryptocurrencies, which will be introduced in a separate bill.The VA law is only after amendments to Ukraine’s Tax Code It is expected to enter into force.
The government’s efforts to regulate the crypto space come after Ukraine gradually became a leader in terms of cryptocurrency adoption in the region and beyond. Blockchain analytics firm Chainalysis ranks the country third in the latest edition of its Global Crypto Adoption Index.
Ukraine gained EU candidate status in June, and in early July, the Parliament, Council, and Commission, key participants in the European Union’s complex legislative process, agreed to implement MiCA across the 27-strong bloc.
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