After months of deliberation and a presidential veto, Ukrainian lawmakers have overwhelmingly passed the “virtual assets” bill.
According to reports, Ukraine’s Parliament voted Tuesday to approve an amended bill on cryptocurrencies. The move is part of Ukraine’s effort to attract crypto investment and know-how. As a result of President Zelensky‘s amendments, the new bill was returned to Parliament in October.
Under the President’s proposals, the Ukrainian Parliament adopted the Law “On Virtual Assets”. Consequently, Ukrainians will be able to declare their income in virtual assets, banks will open accounts for cryptocurrency companies, and Ukrainian cryptocurrency exchanges will operate legally.”
Minister of Digital Transformation and Vice Premier Mykhailo Fedorov welcomed the decision:
Ukraine is already among the top-5 countries regarding cryptocurrency usage, and today we took another step forward: Parliament adopted legislation on virtual assets!
Ukraine can protect its assets from possible abuse and fraud by regulating crypto exchanges and cryptocurrencies.
The Ministry has begun amending the civil and tax codes to accommodate new regulations in a local report. Later, Bloomberg confirmed the report.
Presidential Veto:
Attempts to establish Korea as a crypto leader has been underway since at least November 2021. The country’s Parliament in October approved a similar bill.
As a result, the bill was vetoed by President Volodymyr Zelensky, who sent it back to Parliament for changes. The veto was due to a provision addressing the establishment of an independent regulatory body. The new regulator would oversee virtual assets with the Ministry of Digital Transformation, Central Bank, and National Securities Commission.
However, Zelensky opposed the requirement, saying there is no funding for the new agency in the budget. Therefore, he sent the bill back to Parliament. The Parliament accepted Zelensky’s proposed amendment, so the bill will likely become law in Ukraine.
Tensions in Ukraine
With Russian troops near the border, tensions between Russia and Ukraine are at an all-time high. The situation could escalate into open conflict.
U.S. authorities say that Russian government hackers are likely behind the attacks against Ukrainian officials, currently targeting a massive hacking campaign.
While Ukraine has been unstable, crypto has risen. Ukrainian paramilitary groups are funding their operations using cryptocurrency. Despite the tensions, Russia and Ukraine rank among the top crypto-aware countries globally.
