On 8 September, the Verkhovna Rada of Ukraine adopted in the second reading and in full the draft law “On Virtual Assets”, regulating cryptocurrency operations in the country. The document was supported by 276 deputies.
The law will come into force after amendments to the Tax Code concerning the taxation of virtual assets (VAs) have been adopted. This document has not yet been enacted.
Under the document, VAs are recognised as intangible property. They are divided into secured and unsecured.
VAs are not a means of payment in Ukraine and cannot be exchanged for property or services.
Market participants have the right to legal protection of VA rights, to open bank accounts for settlements in VA transactions, and to determine and set the value of VAs in transactions.
They are also required to comply with anti-money laundering and counter-terrorism financing laws.
The document defines financial VAs, the issuer of which must be a resident of Ukraine. They may be backed by monetary values – in which case turnover is regulated by the National Bank of Ukraine, and also by securities or derivatives – regulated by the National Securities and Stock Market Commission.
Earlier, on 2 December, the Verkhovna Rada passed the draft law ‘On Virtual Assets’ in the first reading.
Before the second reading, the document was amended, but Ukraine’s financial regulators criticised the updated draft law.
Subsequently, the text was updated again in light of the remarks. In June, the Committee on Digital Transformation recommended the draft law for adoption.
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