Ukraine Proposes Law to Completely Legalize Cryptocurrency Transactions

The first draft of a bill to legalize all cryptocurrency transactions in Ukraine has been submitted to its Parliament. Initiated by a group of deputies, the bill proposes to define cryptocurrencies including bitcoin as legal properties which can be exchanged for goods and services.

Draft Law Submitted to Parliament

A bill has been drafted on the treatment of cryptocurrencies in Ukraine and was submitted to Parliament last week. It was initiated by a group of deputies in cooperation with the Ukrainian Blockchain Association, miners, and trading platforms, reported news outlet on Monday. The publication wrote:

“The document is small and most likely will require further work. Nevertheless, it proposes legislative definitions for the main terms of this market, as well as some rules on which in Ukraine it will be possible to lawfully mine [cryptocurrencies]. The main thing [is that] cryptocurrency is not considered a means of payment, but a property, which can be changed to other goods or services.”

The first part of the bill defines cryptocurrency, exchanges, transactions, blockchains, cryptocurrency owners and well as miners. However, the definition for initial coin offerings (ICOs) is not included, the publication noted.

Legalizing All Crypto Transactions

The draft law proposes for the National Bank of Ukraine (NBU) to be the regulator of the cryptocurrency market in the country. Subsequently, the proposal calls for the central bank to develop an operating procedure for cryptocurrency exchanges, explained publication.

In addition, the bill proposes that cryptocurrency owners have the right to choose how to dispose of their cryptocurrencies, including exchanging them for other coins, for electronic money, for fiat, or for goods and services. The same rules would apply to cryptocurrencies as they do private properties and barter contracts, the news outlet elaborated, adding that:

“The bill proposes to completely legalize all cryptocurrency transactions.”

Meanwhile, the NBU has not come to its decision on how to regulate digital currencies. The head of projects and programs at the central bank’s open market department, Emal Bakhtar, said last week that Ukraine is looking at how other countries, including the European Union, deal with cryptocurrencies. He noted how different countries treat them differently, stating that “some forbid, some regulate, some do not regulate,” Newsone quoted him.

There are also many different classifications adopted by various regulators, from being goods to being investments or intangible assets, the publication added, and quoted him saying “some call them money, some a means of payment.” Recently, reported on NBU Deputy Governor, Oleg Churiy, explaining why the central bank have not come to a consensus regarding the regulation of cryptocurrencies.


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