As the use of crypto increases, various developments are taking place across the world in which governments are gradually allowed to buy and sell cryptocurrencies. One of these developments occurred in Ukraine where the government decided to allow residents, after the passage of new law on virtual assets, to maintain, trade and spend cryptocurrencies legally.
This is in the context of El Salvador’s announcement of its acceptance by Bitcoin in June 2021 as legal tender. After that, many small countries that enforce the US dollar as legal tender are ready to act.
An interview by Deputy Minister Oleksandr Bornyakov for Digital Transformation in Ukraine regarding the Crypto Law, said the legislation will fully regulate the crypto space, reduce Ukrainian fees and set the conditions for new services. The law would be used to regulate the crypto space.
The law will make virtual assets fully legal, and users will be able to protect digital assets and report their own crypto holdings after the law is passed.
New crypto payment method
Experts believe that there will be a new market that will allow the storage, exchange and use of crypto as a means of payment.
The project also made it very clear that cryptocurrencies are not a form of payment in the country, but that it is legal to pay with crypto by converting it into Ukrainian cryptocurrencies.
In December 2020, the Law on Virtual Assets was passed in the Ukrainian Parliament and in June 2021 it was approved by the Parliamentary Commission for Digital Transformation.
Over the next three years, government and business officials unveiled a roadmap to ensure that cryptocurrencies can be integrated into the Ukrainian economy – a milestone for the global blockchain community as well.
Crypto exchange permits are issued
The minister also called for cryptocurrency exchanges to apply for permits from businesses in the country.
In order to function, an exchange must obtain service authorizations and be processed by regulators.
No exchange is required as a legal entity, but crypto exchanges have authorized capital requirements to fulfill.
As cryptocurrency assets go global, the Ukrainian minister also said that no cryptocurrency exchange will be introduced in our country if the country has too strict rules and regulations.
A new regulatory authority will be created
The new regulator will be set up in accordance with Ukraine’s Cryptography Law, the State Virtual Asset Regulatory Service.
It will be a fully independent state agency that will grant licenses to Ukrainian crypto companies.
A stablecoin will be implemented by the Ministry of Finance, the National Bank of Ukraine (NBU), while crypto derivatives will be managed by the National Securities and Stock Market Board (NSSMC).
Bornyakov said a crypto-tax bill is expected to be presented to parliament next month where crypto-transactions are not subject to value added tax (VAT).
It’s a new start.
In fact, little by little after El Salvador’s announcement, several governments began to recognize the importance of cryptocurrencies as their reach was spreading very quickly all over the world.
It can clearly be said, with these new laws and government positions, that the adoption of cryptocurrency marks a new dawn.