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Home Law and Legislation

First Successful Cryptocurrency Regulation Hearing In Ukraine’s Parliament.

Ukraine’s legislative effort employing cryptocurrency regulation has had a successful first hearing in nation’s parliament - Verkhovna Rada.

Robin Williams by Robin Williams
December 3, 2020
in Regulation
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First Successful Cryptocurrency Regulation Hearing In Ukraine’s Parliament.
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Ukraine’s legislative effort employing cryptocurrency regulation has had a successful first hearing within the nation’s parliament, the Verkhovna Rada.

After being primarily discussed and given the initial thumbs-up by lawmakers earlier today on Wednesday, the Draft Bill on Virtual Assets now has two more hearings prior to it can become a law.

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If that happens, Ukraine will join the still-short list of countries that have put in situ dedicated laws regulating crypto assets. The country was named a worldwide leader in cryptocurrency adoption by blockchain analytics firm Chainalysis earlier in the month of September when citizens were actively using cryptocurrency for savings, investment, and cross-border trade.

Things weren’t completely smooth for the bill within the parliamentary hearing: Some lawmakers decried spending time on virtual assets when there are more important issues besetting the Ukrainian economy. However, in the end, the bill received 229 “yes” votes out of 340 and passed this first stage of the legislative process.

The bill defines digital assets as “a set of data in electronic form,” that “can be an independent object of civil transactions, also as certify property or non-property rights.” The law suggests not considering virtual assets as tender in Ukraine.

The document singles out virtual assets backed by goods or services, suggesting that they need to be taken out of the market in cases where the backing ceases to exist.

The ownership of virtual assets is taken into account as being the entity holding the private keys unless they’re held with a custodian, forfeited by the court decision, or acquired illicitly.

Digital assets would be regulated by Ukraine’s Ministry of the Digital Transformation, and cryptocurrency service providers must register to be able to operate within the nation. Firms must offer data on ownership structure and beneficiaries, also ensure they don’t facilitate money laundering, and are diligently securing users’ private data.

Tags: #Adoption#Bill#Business#Cryptocurrencies#Legal#Regulations#Ukraine
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