The legislative division of Ukraine wants to introduce a new law to make crypto payments and investments legal. According to the official website of the Verkhovna Rada the proposed law is currently ‘adopted’ and ‘being prepared for signing’. The new legislation uses the standards from the Financial Action Task Force (FATF) as the basis for its national law.
Ukrainian legislators usually pass laws in three stages. First lawmakers present a draft to the Verkhovna Rada, followed by a new version with amendments two weeks later. Finally official approval happens in a third stage, after which the president needs to sign the new law.
The new law is part of the a bigger change in Europe. From January 20th all countries need to have adopted a new set of rules to combat money laundering. For example, all crypto companies will be subject to potential financial monitoring, depending on the amounts and destinations of transactions. All the crypto activity in the Ukraine is under the supervision of the Ministry of Digital Transformation.
Ukraine bullish on crypto
The Ukrainian government has been very positive about cryptocurrencies and blockchain technology. They’ve been planning their latest move for over a year. Back then the country already expressed the ambition to create a regulatory framework that legalizes cryptocurrencies in the country.
Deputy Prime Minister for Digital Information Mikhail Fedorov wants to make the country as efficient as service providers like Uber, Booking.com and AirBnb. “When you interact with the state, it should feel comfortable”, he said two months ago.
Legal payments and legislation of bitcoin and other crypto assets is important for the Ukraine. They want to move crypto assets from their grey area, and make them legally recognized under state law. This will benefit the collection of taxes, of course. As a result president Volodymyr Zelensky wants to speed up the process, making Ukraine a hub for blockchain innovation.
Also published on Medium.