Key Takeaways
- Ukraine Parliament passes crypto regulatory bill
- The bill makes cryptocurrencies legal in the country and will foster greater adoption
- Ukraine is among the countries with the highest crypto adoption rates
The bill titled number 3637 was adopted yesterday by the Ukrainian Parliament.
It makes it possible to regulate cryptocurrencies in Ukraine officially.
According to a publication in local media Ain , 276 legislators voted in favor of the law.
Cryptocurrencies were not banned until now, but the law confirms their place in Ukraine.
They are now officially legal, and market participants will now be able to protect their assets through legal mechanisms.
International service providers will have to comply with traditional data collection requirements that have been established by the Financial Action Task Force (FATF) in recent years.
The law also establishes a new regulatory entity, the National Service for the Regulation of Virtual Assets.
The Deputy Minister of Digital Transformation also confirmed that it is not only a question of regulating but also of encouraging the use of cryptocurrencies:
The law comes as no surprise when you consider the Ukrainian government's very "crypto-friendly" approach in recent times.
For example, in May 2020, the Department of Energy suggested using the country's nuclear power plants to mine Bitcoin (BTC).
Subsequently, the government offered courses on cryptocurrencies.
Government officials have also revealed substantial holdings in cryptocurrency.
Earlier in April, it was reported that the number of crypto-assets held by government officials was about $2.6 billion.
This is also reflected in the population, Ukraine is 4th in the ranking of countries with high crypto adoption rates.
Therefore it is great that the government has decided to embrace it rather than oppose its adoption.
What are your thoughts on the new crypto regulations in Ukraine?
