On March 16, the revised law on digital assets, previously passed by the Ukrainian parliament, officially became law.
As a result, the crypto industry has been legalized in Ukraine, while crypto grants are still pouring into the country’s government’s wallets.
Digital Asset Legal History
Ukraine’s digital asset law is derived from cryptocurrency law. The bill was passed by Ukraine’s National Assembly with an almost absolute majority in September 2021, but was rejected by President Vladimir Zelensky a month later, citing the country’s inability to pay. Create a new regulator dedicated to cryptocurrencies.
President Zelensky later sent the bill back to Ukraine’s parliament, along with a number of other proposals. In February, Ukraine’s parliament consolidated President Zelensky’s supplementary proposals and passed an amendment that opened the way for the country to legalize the nascent industry.
The bill was posted on Twitter on March 16 by Ukraine’s Ministry of Digital Transformation and signed into law by Ukrainian President Volodymyr Zelensky. Therefore, foreign and Ukrainian cryptocurrency exchanges operate legally.
Official digital asset law tweeted by Ukraine’s Ministry of Digital Transformation signed into law by President Volodymyr Zelensky
The role of digital property law
The Ukrainian Digital Asset Law officially became law, determining the legal status, classification and ownership of digital assets. At the same time, the law also introduced financial regulatory measures for digital assets.
Therefore, the cryptocurrency and digital asset market will be regulated by the National Securities and Exchange Commission of Ukraine. The agency will have almost complete control over the industry, including licensing crypto businesses and implementing state policies for the industry.
President Zelensky’s move to sign a law on digital assets underscores the role of cryptocurrencies, especially in the context of the ongoing conflict between Russia and Ukraine.
Last month, Ukraine began accepting donations to the military in digital currencies such as Bitcoin (BTC) and Ethereum (ETH). Just earlier this week, the Ukrainian government launched an official website where people around the world can donate cryptocurrency. The money will be used for military and humanitarian work in Ukraine.
According to blockchain analysis firm Elliptic, Ukraine has raised more than $63 million in cryptocurrencies since the conflict began.
Facilitate global regulation
Ukraine’s digital asset law comes at a time when countries around the world are still viewing this new type of economy in different ways.
In other words, El Salvador has been “too open,” too tolerant, and too hasty to incorporate bitcoin into fiat money and try to make the country a hub for crypto activity. In the opposite case, China is looking to “root” cryptocurrency mining and trading activities.
At the same time, many countries still do not have specific regulations for cryptocurrencies. These countries remain in a “catch or ignore” dilemma or seek to bring exchanges and digital asset firms into financial regulators. As in the UK – cryptocurrency exchanges must be registered with the Financial Conduct Authority and comply with current money laundering rules.
Be careful, Ukraine is once again seeking legislation specifically for the digital asset industry – allowed within the framework.
“The new law is an economic development opportunity for Ukraine. Cryptocurrency companies at home and abroad will be allowed to operate and Ukrainians will be able to participate in the global virtual asset market in a convenient but safe way,” Commerce Minister Mikhailo Fedoro said the husband. . Ukrainian Digitizer said.
Ukraine’s attitude towards digital asset law can be seen as a reference option, prompting some countries to be reluctant to create regulations for the management of cryptocurrencies and digital assets. . number. other numbers.
Ukraine legalizes cryptocurrencies
The Ukrainian parliament has just passed some new proposals to officially introduce bitcoin and cryptocurrencies into everyday activities. However, Bitcoin is not yet considered a monetary unit as it is in El Salvador.
Mykhaylo Fedorov concluded: “The newly adopted regulations will open many doors for the national economy. Companies working in the cryptocurrency industry in Ukraine can now operate more smoothly. This is an opportunity for the Ukrainian people, their participation in the digital economy Growth is growing, growth is growing strongly.” Ukraine’s Minister of Digital Transformation.
With more than 272 votes in favor of more than 365 delegates, the Digital Assets Act was passed. The code includes many