Digital Transformation Committee Recommends Amended Ukrainian Crypto Law for Adoption – Regulation

The Law “On Virtual Assets,” Ukraine’s attempt to regulate its growing crypto space, has been revised again and recommended for final adoption. A key parliamentary committee has voted in favor of the bill, which Ukraine's president vetoed this month.

Ukrainian MPs to vote on updated “virtual assets” law in November

The saga surrounding Ukraine's long-awaited legislation regulating cryptocurrencies and related activities is coming to an end. The Committee on Digital Transformation in the Verkhovna Rada, the Ukrainian parliament, has discussed the amended draft law “On Virtual Assets” this week and supported the recent changes.

The law was updated after it was has come back President Volodymyr Zelensky to the legislature in early October. Head of State motivated his decision was primarily based on the argument that the establishment of a new regulatory authority for the crypto market, as provided for in the draft law, would be too expensive for the state.

Zelensky suggested that the National Securities and Stock Market Commission (NSSMC) be tasked with oversight instead. The NSSMC will also regulate virtual assets based on securities, and if they are backed by fiat currencies, the National Bank of Ukraine (NBU) is the competent authority.

The amended law will come to the floor of the Rada on November 2 and be discussed during an extraordinary session of parliament, crypto news agency Forklog reported. If lawmakers adopt it again, this time the president will have to sign a law within 10 days under the country's constitution, the online publication said.

Ukrainian MPs approved the first version of the law “On Virtual Assets” in its second and final reading at the beginning of September. The draft had already made some changes after its first reading in December last year. That Revision came in response to criticism from various regulators, including the NBU and the NSSMC.

The legislation recognizes cryptocurrencies as intangible assets, which are divided into two main categories, secured and unsecured. They have been denied legal tender status and will not be accepted as payment for other goods or services. However, this would be possible by converting into the national fiat currency through intermediaries.

Such crypto service providers must adhere to the country's existing anti-money laundering regulations, establish identification and verification procedures, and monitor financial transactions. Cryptocurrency exchanges require approval from the Ministry of Digital Transformation to legally operate in Ukraine, a leader in Ukraine Crypto Introduction. Companies trading virtual assets can open bank accounts and apply for legal protection.

Do you expect Ukrainian lawmakers to finally pass the law “On Virtual Assets”? Let us know in the comments section below.

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