Ukrainian Parliament approves updated law on virtual assets

On 17 February, the Verkhovna Rada of Ukraine, on its reconsideration, approved in the second reading and in full the updated law ‘On Virtual Assets’, regulating cryptocurrency operations within the country. The document was supported by 272 deputies.

In the new document, the recommendations of the Ukrainian president regarding regulators of the VA market are taken into account. The authors refused to create a new executive body and excluded the Ministry of Digital Transformation from among the regulators.

Under the updated law, state regulation of the virtual assets market within its powers is carried out by the National Securities and Stock Market Commission (NSSMC) and the National Bank of Ukraine.

The National Bank will oversee turnover of virtual assets backed by monetary values. Supervision of other virtual assets, including those backed by securities or derivative financial instruments, is entrusted to the National Securities and Stock Market Commission.

It will also issue permits and regulate the activities of service providers involved in the turnover of virtual assets.

Also, the NSSMC defines the procedure for considering cases of liability for violations of VA legislation, including the imposition of financial penalties.

Within six months, the NSSMC must develop the procedure for maintaining a state registry of VA service providers.

Under the Constitution of Ukraine, the president is obliged to sign the law within ten days.

The law will come into force after Parliament passes changes to the Tax Code concerning crypto-market taxation. When this will happen is unknown. However, the bill’s authors said they would submit the corresponding document ‘in the coming days’.

Back on 8 September 2021, the Verkhovna Rada adopted in second reading and in full the law ‘On Virtual Assets’. However, in early October, President Volodymyr Zelenskiy vetoed the document and demanded it be amended in light of his proposals.

ForkLog examined in detail the reasons for such a decision.

On 29 October, the Committee of the Verkhovna Rada on digital transformation recommended adopting the updated law ‘On Virtual Assets’.

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