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 given its support for
the bill which was vetoed by the Ukrainian president this month.
Ukrainian Deputies to Vote on Updated ‘Virtual Assets’ Law in November
The saga with Ukraine’s long-awaited legislation regulating
cryptocurrencies and related activities is heading towards its end. The
Digital Transformation Committee at the Verkhovna Rada, the Ukrainian
parliament, has discussed the amended draft law “On Virtual Assets” this week and supported the latest changes.
The law has been updated after it was returned to the legislature by President Volodymyr Zelensky earlier in October. The head of state motivated
his decision mainly with the argument that the establishment of a new
regulatory body for the crypto market, which was envisaged in the bill,
would be too expensive for the state.
Zelensky proposed the National Securities and Stock Market Commission
(NSSMC) to be tasked with the 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) will be the
authority in charge.
The amended law will hit the floor in the Rada on Nov. 2 and will be
considered during an extraordinary meeting of the parliament, the crypto
news outlet Forklog reported. If lawmakers adopt it again, this time
the president will be obliged to sign it into law within 10 days in
accordance with the country’s constitution, the online publication
noted.
Ukrainian deputies approved
the initial version of the law “On Virtual Assets” on the second and
final reading in early September. At the time, a number of changes had
already been made to the draft after its first reading in December of
last year. That revision came in response to criticism from various regulators, including the NBU and the NSSMC.
The legislation recognizes cryptocurrencies as intangible goods
classified in two main categories, secured and unsecured. They were
denied a legal tender status and will not be accepted as a means of
payment for other goods or services. However, this would be possible through conversion to the national fiat currency by intermediaries.
Crypto service providers such as these will be required to abide by
the country’s existing anti-money laundering rules, introduce
identification and verification procedures and monitor financial
transactions. Cryptocurrency exchanges will need authorization from the
Ministry of Digital Transformation in order to operate legally in
Ukraine, a leader in crypto adoption. Companies dealing with virtual assets will be able to open bank accounts and seek judicial protection.
source link : https://news.bitcoin.com/digital-transformation-committee-recommends-amended-ukrainian-crypto-law-for-adoption/
