The Verkhovna Rada of Ukraine has supported a bill on the legalization of cryptocurrencies in the country, which will legalize virtual assets and businesses in this area.

On September 8, the Verkhovna Rada of Ukraine, the only government body in the country authorized to pass laws, supported Bill No.3637, which would legalize virtual assets and business in this area in the country. The document was supported by 276 out of 450 deputies, Epravda reports.

This law is basic and defines the legal status of virtual assets, thereby providing legal protection to users and market participants. Thus, foreign and Ukrainian crypto exchanges can officially operate in the country, and banks can open accounts for crypto companies. In addition, this means that Ukrainians will be able to declare their income in virtual assets.

According to the BP Committee on Anti-Corruption Policy, the volume of transactions in Ukraine with virtual assets is about $150-200 million per day, and the capitalization of virtual assets is more than $2 billion.

The bill is based on the current standards for regulating operations with virtual assets of the international group for combating money laundering, The Financial Action Task Force (FATF). They set the rules for service providers related to the circulation of virtual assets and help in de-shadowing this market.

The market regulator will be the Ministry of Digital Industry, except in some cases, where the National Bank of Ukraine (NBU) or the National Securities Commission enters. The agency will facilitate the adaptation of Ukrainian legislation on the circulation of virtual assets with international standards and protect the rights of market participants.

"Soon, foreign and Ukrainian services related to the circulation of virtual assets, in particular, crypto exchanges, will be able to officially operate in our jurisdiction," commented Mikhailo Fedorov, Vice Prime Minister of Digital Transformation.

In order to carry out activities related to the circulation of virtual assets, service providers will have to disclose ownership structure to be able to identify the ultimate beneficial owners. Such owners must have an impeccable business reputation, as well as establish internal financial monitoring procedures to prevent money laundering.

The Law comes into force on the day when the Law of Ukraine on the relevant changes to the Tax Code regarding the specifics of taxation of transactions with virtual assets comes into force, but not earlier than the day of publication of this Law.

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