Crypto assets are now fully legal in Ukraine. Cryptocurrencies are widely used in Ukraine, and in recent years the country has been among the top 10 countries in terms of cryptocurrency usage.
On March 16, Vladimir Zelensky
signed the law "On Virtual Assets." The document describes legal status, concept and types of virtual assets, as well as the principles of ownership, management and control of crypto assets. The adoption of the document is the first step towards the creation of a legal framework for the crypto assets market.
The National Securities and Exchange Commission and the National Bank of Ukraine will be responsible for managing the crypto assets market. They will set the rules and manage the permits for crypto service providers.
The new law means that now:
- Crypto exchanges are now fully legal;
- Banks and financial institutions can interact with crypto companies;
- Citizens' investments in virtual assets will be protected by the state, including through the courts.
Crypto assets have become a powerful tool for raising additional funds to support Ukraine in recent months. Moreover, many cryptocurrency companies and blockchain projects have been registered in Ukraine, which can now improve the transparency and accountability of their activities.
The trend towards legalization of cryptocurrency assets has been evident in recent months. In the U.S., new steps have been taken in this direction recently,
including the release of President Biden's Executive Order "Ensuring Responsible Development of Digital Assets." While still more of a call to collective action than a set of guidelines and a clear plan, the White House is already taking steps to bring the banking and cryptocurrency industries closer together. The order calls for "support for technological advances that promote the responsible development and use of digital assets."
The need to incorporate cryptocurrencies into the normal lives of citizens, the economy, and international relations has intensified. Governments are accelerating the legal adoption of cryptocurrencies to meet citizens' needs for advanced financial tools.
