Bitcoin fury: European country passed law to regulate cryptocurrencies

This week, a historic event happened for the world of cryptocurrencies and blockchains. El Salvador eventually adopted Bitcoin as legal tender, however, many countries are developing cryptocurrencies or are evaluating the possibility of accepting existing ones. Specifically, the Kiev parliament has passed a law that determines the rules for cryptocurrency-related operations in Ukraine. The “On Virtual Assets” law recognizes cryptocurrencies as intangible assets and denies them the status of legal tender. It also regulates the activities and obligations of crypto companies.

Verkhovna Rada, the parliament of Ukraine, adopted the law “on virtual assets” in second and final reading. The legislation regulates cryptocurrency operations within the jurisdiction of Ukraine. MPs approved the bill by a large majority of 276 votes out of the 376 MPs present, and only six voted against the motion.

The provisions of the new law recognize virtual assets as intangible assets, which can be insured and uninsured. However, cryptocurrencies are not accepted as a legal means of payment in Ukraine and their exchange for other goods or services will not be allowed.

The law also introduces the term “virtual financial assets” which must be issued by entities registered in Ukraine. If these assets are backed by currencies, they will be regulated by the National Bank of Ukraine (NBU), the country’s central bank. If the underlying asset is a security or derivative, the National Securities and Exchange Market Commission (NSSMC) will be the primary regulator.

Participants in the crypto market will be able to independently determine the value of virtual assets, open bank accounts to settle transactions, and seek legal protection for associated rights. Service providers must comply with the country’s anti-money laundering regulations and avoid attempts to finance terrorism using their platforms, just like traditional financial institutions.

Thus, Ukraine becomes the fifth country in these weeks to establish ground rules for the cryptocurrency market, a sign that governments around the world are realizing that Bitcoin is here to stay. The new legislation also sets out some fraud protections for those who own bitcoin and other cryptocurrencies, and for the first time for the Verkhovna Rada, lawmakers have attempted to define basic terminology in the crypto world. currencies. If signed by the president, virtual assets, digital wallets and private keys are terms that will be enshrined in Ukrainian law.

Since China announced the test of its central bank-regulated cryptocurrency (CBDC), several countries have done the same, including: Sweden, Bahamas, France, Philippines, Japan, Spain, Turkey and Switzerland. On the other hand, although the only country to have adopted Bitcoin as legal tender is El Salvador, many countries have taken steps regarding cryptocurrencies, such as Ukraine. The region with the most countries in favor of cryptocurrencies is Latin America, due to weak local currencies with Argentina, Venezuela, and Brazil being the top three crypto powers in the region.

Some Latin countries that are evaluating cryptocurrency regulation include: Argentina, Colombia, Chile, Brazil, and Panama. In the rest of the world, the country that is making the most progress in this regard is the United States. However, other countries like France, Australia, Japan, Portugal and Germany have also started adopting cryptocurrencies and regulating them in one way or another.

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