Ukraine President returns “Virtual Assets” law to Parliament

Volodomyr Zelensky argued with the need of additional financing in order to fulfill the requirements of the bill

With the justification of not being able to guarantee the “expenditure in the state budget” to assure the suggestions in the “Virtual Assets” law, the Ukraine President Volodymyr Zelensky returned it to the Parliament for adjustments. 

The legislation passed in December, creating a lot of expectations for the official crypto regulation in the country. In sequence, it was sent to the Verkhovna Rada (Ukraine’s legislature) in June this year. 

The proposed law has, indeed, some requirements such as the creation of a new regulatory body for the crypto market, subordinate to the executive power. This was the main point of consideration to Zelensky who believes that this “will require significant expenditures from the state budget”. 

In addition to that requirement, the law introduces the allocation of responsibilities among government institutions according to each activity to oversee the circulation of digital assets under Ukraine’s jurisdiction. 

This would bring the responsibility to the National Bank of Ukraine (NBU) in the case assets are backed by currencies or to National Securities and Stock Market Commission (NSSMC) if the asset behind is security-related. 

In addition to bringing recognition to virtual assets as intangible goods, the new legislation divides them into secured and unsecured. 

However, according to the new law cryptos are not accepted as a legal means of payment as well as the direct exchange for other goods. Also it doesn’t determine the legal status of mining. 

The law includes authorization from the Ukrainian Ministry of Digital Transformation in order for exchanges and other digital assets platforms to operate in the East European nation and tax amendments will address accounting procedures applicable to the various crypto-related activities.

While all of this is discussed, the public awaits the final definition of the Ukrainian law regarding crypto so the country will finally follow other countries that already are one step further in the digital and financial transformation. 

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