A new law regulating the use of cryptocurrencies in Ukraine was passed by parliament last September 8. It was completed with a nearly unanimous vote of 276 lawmakers after just two readings. This allows citizens to trade cryptocurrencies while being protected against fraud and other potential risks online.
As of now, the new law is awaiting the approval of Ukraine President Volodymyr Zelenski. If signed, crypto traders will enjoy protection under the legislature against fraud and other scams online.
An excerpt from the new law states that it will regulate ‘legal relations arising in connection with the turnover of virtual assets in Ukraine, defines the rights and obligations of participants in the virtual asset market, and the principles of state policy in the field of virtual assets.’
Aside from protecting users against fraud, the law also delves into other things on the use of crypto. Some of these include the definition of virtual assets along with explanations as to what virtual wallets and public or private keys are.
Traders will simply be allowed to own and trade cryptocurrencies, but will not be allowed to use them as an official mode of payment in Ukraine.
The new law in Ukraine comes at a good time because the use of crypto has always been considered risky or a scam. According to the Kyiv Post Newspaper, Ukraine has transitioned from being sceptical about crypto over the past few years to potentially opening the market for investors in 2022.
The Minister of Digital Transformation in Ukraine, Mykhailo Fedorov, has shared his thoughts on the newest law and how it could be an opportunity for more Ukrainians to start investing. ‘Only a few countries in the world have legalized crypto assets – Germany, Luxembourg, Singapore. Ukraine will be one of them,’ he said.
For the past few years, the regulation of using crypto in Ukraine has been vague. Although the locals have always been free to buy and sell cryptocurrencies, there were no official regulations that were followed.
Now that the government has allowed more leeway in trading crypto, this could be the first step in making more laws that regulate cryptocurrencies in the country.
Ukraine is the latest out of 5 different countries that have made moves with cryptocurrencies this month. El Salvador has recently adopted Bitcoin as legal tender, Cuba has also legalized the use of crypto while Panama is also looking into passing regulations.
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