Ukraine has legalized the crypto-sector – the President signed the profile law

On March 16, 2022, President of Ukraine Volodymyr Zelensky signed the Law of Ukraine “On virtual assets”, which was adopted by the Verkhovna Rada of Ukraine on February 17.

It creates conditions for launching a legal market of virtual assets in Ukraine. The new market will be regulated by the National Commission on Securities and Stock Market.

The signed Law:

  • defines the legal status, classification and ownership of virtual assets;
  • defines market regulators – the National Bank of Ukraine and the National Securities and Stock Market Commission
  • creates conditions for further formation of the legal framework in the virtual asset market;
  • determines the list of virtual asset service providers and terms of their registration;
  • provides for the introduction of financial monitoring measures in the sphere of virtual assets.

The National Commission on Securities and Stock Market will:

  • form and implement the state policy in the field of virtual assets;
  • determine the procedure for circulation of virtual assets;
  • issue permits to virtual asset service providers;
  • to carry out regulation, supervision and financial monitoring in this area.

Until then, the development of the legal framework in this area was handled by the  Ministry of Digital Transformation of Ukraine. Together with industry representatives a profile law was being developed. Now the Mincyfra also actively works on making changes to the Tax and Civil Codes of Ukraine for the full launch of the virtual assets market.

Signed Law will come into force from the date of entry into force of the Law of Ukraine on Amendments to the Tax Code of Ukraine on peculiarities of taxation of operations with virtual assets.

The President’s signature of this Law is another important step towards the withdrawal of crypto-sector from the shadows and the launch of a legal market of virtual assets in Ukraine.