Ukrainians to Trade and Spend Cryptocurrencies Legally, Digital Ministry Says

Residents of Ukraine will be able to legally keep, exchange, and spend cryptocurrencies once the new virtual assets law is adopted. The legislation will comprehensively regulate the crypto space, possibly lower taxes for Ukrainians and create conditions for new services, a government official revealed.

New Regulations to Create Market for Crypto Services for Ukrainians

Ukrainians owning cryptocurrency will benefit from the law “On Virtual Assets” as it will introduce investor protection and allow them to legally exchange and declare their crypto holdings. The legislation will make virtual assets “a completely legal and common phenomenon for the government and the society,” Ukraine’s Deputy Minister of Digital Transformation, Oleksandr Bornyakov, said in an interview with the financial news portal Minfin.

Ukrainians to Trade and Spend Cryptocurrencies Legally, Digital Ministry Says
Oleksandr Bornyakov

The official expects to also see a whole new market for services allowing coins to be stored, exchanged, and used in payments. Although the draft states that cryptocurrencies are not a means of payment in the country, it will be legal to pay with crypto through an intermediary providing instant conversion to Ukrainian hryvnia, Bornyakov explained. The same currently applies to foreign fiat currencies like the U.S. dollar that can be spent through a bank card, for example.

The virtual assets bill was voted through at the first reading in the Verkhovna Rada, Ukraine’s parliament, in December. Since then, it has been revised and in June the parliamentary Committee on Digital Transformation recommended its final adoption, despite criticism from regulators in Kyiv. In July, government and business representatives unveiled a roadmap to achieve the integration of cryptocurrencies into the country’s economy within the next three years.

Crypto Exchanges to Apply for Permits to Operate in Ukraine

Oleksandr Bornyakov also announced that cryptocurrency exchanges will have to acquire permits to provide services to Ukrainians and will be checked by regulators. He emphasized this is not a licensing regime as

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