In Ukraine, work is underway to update the legal act on cryptocurrencies to align the country’s legislation with European standards. Several government institutions in Kyiv are preparing changes to the bill “On virtual assets” that was signed into law earlier this year.
Ukraine to convert European Crypto regulations into national law
The Law of Ukraine “On Virtual Assets”, the main body of legislation regarding the country’s crypto space, will be amended according to the legislative package on Crypto Assets (MiCA) in the European Union Markets.
Since the Eastern European country has been granted candidate status for EU membership, Ukraine must adapt its national laws to European standards, the country’s Ministry of Digital Transformation explained, citing crypto news outlet Forklog.
The law was first approved by the Ukrainian parliament a year ago, but President Volodymyr Zelensky responded with some recommendations. The Verkhovna Rada approved the revised bill in February this year and Zelensky signed it in March.
The report suggests that the Virtual Assets (VA) Act may now undergo major changes. The National Securities and Stock Market Commission (NSSMC), the National Bank of Ukraine (NBU) and representatives of the industry are working on the reforms. The Digital Ministry explained:
The update may even affect the allocation of virtual assets. The terms of initial VA provisions are also reviewed.
The new version of the law “On Virtual Properties” It could be registered by the end of 2022. The NSSMC emphasized the need for the amendment to frame the taxation rules for cryptocurrencies, which will be introduced through a separate bill. The VA Act will be implemented only after the Tax Code of Ukraine is amended.
Government efforts to control the crypto space have seen Ukraine gradually become a leader in cryptocurrency adoption in the region and beyond. Blockchain analysis company Chinalysis has ranked the country third in the latest edition of its Global Crypto Adoption Index.
Ukraine received candidate status for EU membership in June. In early July, the key participants in the EU’s complex legislative process – the Parliament, the Council and the Commission – agreed to implement the MCA in a 27-strong group.
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