Ukraine is on course to legalize cryptocurrencies like Bitcoin after the country’s parliament passed the second reading of the Virtual Assets Bill on Wednesday.
The bill voted on by 276 deputies seeks to regulate cryptocurrencies allowing holders to trade and declare them legally, AIN reports.
If the law is approved, international blockchain companies will also have an opportunity to register and operate in the country.
Besides making cryptocurrencies legal, the bill also seeks to cushion market players offering them entitlement to judicial and other ways of protecting their digital currencies.
The proposed law has tasked the Ministry of Digital Transformation to regulate the cryptocurrency market. However, to some extent, the National Bank of Ukraine and the National Securities and Stock Market Commission might oversee the sector.
Elsewhere, the bill has fronted the formation of a new regulator, the National Virtual Assets Regulatory Service (NVARS), focusing on issuing licenses to crypto companies in the country. At the same time, the Financial Action task Force will conduct financial monitoring of digital currencies.
Benefits of legalizing cryptocurrencies in Ukraine
Officials have stated that cryptocurrency holders and players will operate in a transparent market if the bill passes.
“Cryptocurrency owners will get several advantages. Because there will be a legal base for cryptocurrencies, they will be able, at least, to protect their virtual fortune if something happens. They also will be entitled to exchange crypto assets and declare them. This process will be completely “transparent,” said Alex Bornyakov, Deputy Minister of Digital Transformation for IT Development.
The official added that there would be a natural market of intermediaries to pay for goods using cryptocurrencies with the legislation.
The development comes barely a day after El Salvador officially adopted Bitcoin as a legal tender. The country’s move has inspired other jurisdictions to begin considering the legalization of cryptocurrencies.