Mark Weaden
Residents in Ukraine will now be able to exchange and spend cryptocurrencies legally
The passing of the bill seems like yet another positive story for the cryptocurrency world, as governments around the world begin to accept change. The latest from Ukraine is a new virtual asset law, which will allow citizens to maintain, buy, sell, and spend cryptocurrencies with impunity.
The announcement doesn’t quite reach the same heights of excitement that we felt when we heard El Salvador would be accepting Bitcoin as a legal tender at the start of the summer. Nonetheless, it is something that may have been a catalyst for many other countries to follow suit.
What will change?
The bill will fully regulate the crypto space and establish conditions for new products and services to interact with digital currencies. All virtual assets will become entirely legal and anyone holding them will be required to declare them for taxation.
The aim is clear. A statement released by the government and business officials unveiled a long-term plan to integrate cryptocurrencies into the Ukrainian economy. The announcement has been met with applause from those inside the crypto sphere, as it marks a significant moment for the global blockchain community.
As well as the general use of cryptocurrencies, the other major point on the bill is the necessity for crypto-exchange permits. These permits will be required for crypto exchanges and will be available from Ukrainian-based companies. Any company applying for a permit will go through a regulatory process and meet the capital requirements set.
What about regulation?
Regulation has been the big talking point for crypto enthusiasts and skeptics for too long now. The Ukrainian government will create a new regulatory authority operating as an independent state agency, which will align companies with the new national crypto law.
The Ministry of Finance and the National Bank of Ukraine will introduce a stablecoin. In addition to a regulated stablecoin, there will be a crypto-tax bill, where crypto-transactions are not subject to VAT. The bill in general is a certain milestone for crypto and paves the way for a very exciting few years to come.
