Ukraine is all set to legalize cryptocurrencies after the Ukrainian parliament, The Verkhovna Rada, passed Bill no. 3637 which initiates a legal mechanism for the regulation of digital assets.
According to various reports, 276 MPs voted in favor of the bill at its second reading which allowed traders and investors to trade and declare them legally. The bill also stipulated that international blockchain and crypto-based companies will be welcomed to operate in Ukraine.
Apart from cryptocurrencies, the bill will regulate ICOs and IDOs for token financing as well. It will also be necessary to determine the legal status, classification, property rights, and other key legal definitions.
In addition, the bill also included information on anti-money laundering measures. It would be necessary for service providers such as exchanges to carry out customer authentication (KYC) and other compliance measures recommended by the Financial Action Task Force (FATF).
In an exchange with local news media Minfin, Alex Bornyakov, Deputy Minister of Digital Transformation for IT Development, commented:
“Cryptocurrency owners will get a number of advantages. Because there will be a legal base for cryptocurrencies, they will be able, at least, to protect their virtual fortune if something happens. They also will be entitled to exchange cryptoassets and declare them. This process will be completely “transparent.” In addition, we expect that there will be a real market of intermediaries allowing pay for goods with cryptoassets, store, and exchange them. So, there will be more options for their use.”
The news was first reported by Nachasi, a Ukrainian media partner of the major crypto exchange Binance. Since 2019, Binance has been working with the country’s Ministry of Digital Transformation to develop the crypto industry.