Blockchain & Crypto

Ukraine passes new law to regulate cryptocurrency

The Parliament of Ukraine has passed a law that regulates cryptocurrency and ensures the safety of users. It now awaits President Volodymyr Zelenskyy’s assent. Ukraine has become the third country to pass legislation regulating cryptocurrency, following El Salvador and Cuba. Trading in cryptocurrency was permitted even before this legislation.

Provisions under the New Law

Ukraine has not accepted Bitcoin as legal tender, unlike El Salvador, where the majority of citizens do not want it as a legal tender. 

Ukraine’s law permits citizens to possess, exchange, and trade cryptocurrencies on domestic and international platforms. They must, however, register themselves in Ukraine. Participants in this market can independently determine the value of virtual assets. They can open bank accounts to settle transactions and can also seek judicial protection. Further, crypto service providers have to adhere to the country’s anti-money laundering regulations.

The new law also recognizes virtual assets as both secured and unsecured intangible goods. It mandates the use of the term ‘Financial virtual assets’ by registered entities. But, people can’t use Bitcoin and other cryptocurrencies to pay for goods and services.

Ukraine had earlier passed a law to treat its Central Bank Digital Currency (CBDC) as equivalent to cash. Although My Lawrd could not retrieve a copy of the law and independently confirm, the new law says that the country’s Central Bank will regulate assets backed by digital currency. Ukraine’s daily turnover in digital assets is to the tune of nearly $37,000, TOI reported.

The country’s National Stock market commission will regulate any derivative or security asset.

Latest update on India’s crypto regulation bill

Finance Minister Ms. Nirmala Sitharaman recently informed that a proposed law has been tabled before the Cabinet and is awaiting its approval. As per previous reports, the bill was likely to be tabled in the Parliament during the Monsoon Session.

The law will reportedly define cryptocurrencies based on their use case. Further, for taxation and other purposes, the bill will treat cryptocurrencies as an asset/ commodity. Additionally, the bill also compartmentalizes such currencies based on use case: payments, investment, or utility.

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Pukhraj Biala

I am an undergraduate student at Symbiosis Law school, NOIDA, pursuing B.A.LL.B. I am a problem solver who believes in reaching to a conclusion by weighing all the options and identifying the best possible one. I find Technology Laws quite fascinating and I continue to follow and learn the subject.

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