Deputy Minister of Digital Transformation of Ukraine Alexander Bornyakov told the details of the draft law “On virtual assets” aimed at regulating cryptocurrency activities in the country.
Bornyakov said that the second reading of the bill will take place in the near future, which implies that owners of cryptocurrencies will be able to legally exchange crypto assets and declare them. The bill will regulate the activities of intermediaries providing services for the storage and exchange of cryptocurrencies, and will also strengthen the protection of owners of virtual assets. Cryptocurrency exchanges will be required to obtain a work permit in Ukraine, and this procedure will become much easier than obtaining a license, since they will not be required to register a legal entity.
The exchange will have to prove that it has the required amount of capital, and there are no persons from the sanctions lists among its founders. According to Bornyakov, obtaining permission to carry out cryptocurrency activities in the country will be similar to obtaining a banking license. However, the oversight of the exchanges will not be as strict compared to the control that banks are subject to by the National Bank of Ukraine (NBU). Bornyakov said that this would allow users to file complaints with Ukrainian regulators on cryptocurrency exchanges in the event of any violations. In the future, it is planned to interact with world regulators on the exchange of data to combat money laundering.
“Virtual assets are the future of Ukraine and the whole world. In 10-15 years, many countries will be able to completely abandon paper money. But if digital assets continue to be used on the black market, they will not be ubiquitous, so transactions with them must be transparent. At the same time, we do not want to hinder the development of the new industry by excessive regulation, ”Bornyakov said.
He added that the draft law “On Virtual Assets” provides for the creation of a new regulatory body – the National Service for the Regulation of the Circulation of Virtual Assets (NIAC). The agency will issue permits for cryptocurrency firms to work in Ukraine. In addition, it is proposed to classify virtual assets into unsecured and secured. Digital assets backed by currencies, or stablecoins, will be regulated by the NBU. Virtual assets backed by securities will be controlled by the National Commission on Securities and Stock Market of Ukraine (NSSMSC).
As for making payments in cryptocurrencies, the Deputy Minister explained that in accordance with the bill, cryptocurrencies are not considered a means of payment. However, citizens of Ukraine will be able to pay in cryptocurrencies through intermediaries, when, when paying for a product or service, cryptoassets are converted into the state currency. The politician said that cryptocurrency mining was not mentioned in the bill. Bornyakov called it a legal activity that does not need additional regulation.
Bornyakov also commented on the creation of the digital hryvnia. He believes that the digital currency of the central bank will allow transparent tracking of payments of social benefits, and for what purposes they are spent. In July, Ukrainian President Volodymyr Zelenskyy signed the Law on Payment Services, giving the NBU the right to launch the digital hryvnia.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
