As the use of cryptography increases, various developments take place throughout the world in which governments are gradually permitted to purchase and sell cryptocurrencies. One such development occurred in Ukraine where the government decided to allow residents, after the passage of the new virtual asset law, to maintain, exchange, and spend cryptocurrencies legally.
This is in the context of El Salvador’s announcement of its acceptance by Bitcoin in June 2021 as a legal tender. After that, many small countries that apply the US dollar as a legal tender are ready to take action.
An interview made by Deputy Minister Oleksandr Bornyakov for Digital Transformation in Ukraine about the Crypto Law, said the legislation would fully regulate crypto space, lower Ukrainian charges, and establish the conditions for new services. The law would be used to regulate crypto space.
The law will make virtual assets entirely legal, and users can protect digital assets and declare their own cryptography holdings after the law has been adopted.
New payment method through crypto
Experts feel there will be a new market that will permit the storage, exchange, and use of cryptography as payments.
The draught also showed very clearly that cryptocurrencies are not a method of payment in the country, but that it is lawful to pay with crypto by converting it into Ukrainian cryptocurrencies.
In December 2020, the Virtual Assets Act was voted in the Parliament of Ukraine, and in June 2021, it was endorsed by the Parliamentary Committee for Digital Transformation.
In the course of the next three years, government and business officials unveiled a roadmap to ensure cryptocurrencies can be integrated into the Ukrainian economy – a significant milestone for the world blockchain community as well.
Crypto-exchange permits are issued
The Minister also called for crypto-monetary exchanges to seek permits from companies in the country.
To operate, an exchange must obtain services authorizations and be processed by regulators.
No exchange is required as a legal entity, but cryptographic exchanges have some authorized capital requirements to fulfill.
As cryptocurrency assets become global, the Ukrainian Minister also said that no crypto exchanges are going to be introduced to our nation if the country has too strict rules and regulations.
A new regulatory authority will be established
The new regulatory body will be set up in accordance with Ukrainian crypto law, the National Service for Virtual Asset Regulation.
It will be a fully independent state agency that will grant permits to Ukrainian crypto companies.
A stablecoin will be implemented by the Ministry of Finance, the National Bank of Ukraine (NBU), while crypto derivatives will be handled by the National Securities and Stock Market Board (NSSMC).
Bornyakov said that a draught crypto-tax bill is likely to be presented next month in Parliament where crypto-transactions are not subject to value-added taxation (VAT).
This is a new start.
Indeed, slowly after the announcement by El Salvador, several governments are emerging to recognize the importance of Cryptocurrencies because their reach is expanding very rapidly worldwide.
We can clearly state, with these new legislation and government positions, that the adoption of cryptocurrency marks a new dawn.