The Verkhovna Rada of Ukraine adopted a bill allowing operations with cryptocurrencies

The Verkhovna Rada of Ukraine adopted a bill on virtual assets, regulating their release, circulation and transactions with their use, as well as giving them a legal status in the country.

V
the bill the concept of a virtual asset is presented – this is a special type of property in electronic form that can be used by citizens. Virtual assets can be secured or unsecured.

The concept of a virtual asset service provider is also given. We are talking about any natural or legal person that provides services for the exchange, translation, storage or management of virtual assets. In addition, the document clearly identifies the term “virtual asset wallet”. It means software that provides the user with information about his virtual assets, and the ability to dispose of them at his discretion.

According to the adopted bill, cryptocurrencies will not be considered a means of payment, however, participants in the virtual asset market will have the following rights:

• independently choose a counterparty for conducting transactions with cryptocurrencies;

• receive from virtual asset service providers accurate information about the rules of their work and the conditions for conducting transactions;

• open accounts with banks and other financial institutions to conduct transactions with virtual assets;

• the possibility of legal protection of their rights to digital assets, as well as protection from the state;

• the right to protection of personal information in accordance with the Law of Ukraine “On the Protection of Personal Data”.

In turn, users should be aware that they conduct transactions with digital assets at their own risk. Before carrying out these operations, they need to study the peculiarities of the functioning of the systems for the circulation of virtual assets. In addition, participants in the cryptocurrency market are required to strictly comply with the requirements of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Criminally Obtained Incomes, Terrorist Financing and the Financing of the Proliferation of Weapons of Mass Destruction.” Other international regulations governing digital assets must also be followed.

The approved bill is aimed at creating a favorable environment for the development of the cryptocurrency market, ensuring transparency of operations, as well as preventing fraud using digital assets.

In July, Ukrainian President Volodymyr Zelenskiy signed the Law on Payment Services, allowing the National Bank of Ukraine to issue digital hryvnia, which will be considered legal tender in the country.