Ukraine Updates Crypto Bill Kicking One Ministry Out as a Regulator

Ukraine Parliament has voted to revise their crypto bill seeking to create a new regulatory body over digital assets. The Parliament, the Verkhovna Rada, has approved significant amendments to the bill ‘On Virtual Assets’ pending President’s signature within ten days.

Ukraine Votes Out Ministry of Digital Transformation as a Crypto Regulator

On Feb. 17, 2022, Ukraine’s Parliament voted in a new version of the crypto bill with large support for the amendments. The new regulatory proposals received support from 272 out of 365 deputies.

The deputies approved the bill following President Volodymyr Zalensky’s advice to drop the Ministry of Digital Transformation as a crypto regulator. The ministry will not oversee the crypto market in Ukraine anymore as its legislative power has been stripped off legally. 

Per Mikhail Fedorov, the head of Ukraine’s Ministry of Digital Development, the new law allows Ukraine to start a legal market for digital assets. It also stipulates that Ukraine’s National Securities Commission will serve as the core regulator for digital assets.

According to Alex Bornyakov, Deputy Minister of Ukraine’s Ministry of Digital Transformation, the ministry welcomes the changes gladly. He continued:

“Shrinking regulatory bodies can actually significantly accelerate crypto market launch. In order to ensure the growth of the crypto industry we are ready to cooperate with The National Commission on Securities and Stock Market. Ultimately, real change in any market is driven by collaboration.”

What Is Ukraine’s Bill ‘On Virtual Assets?’

Ukraine’s bill on Virtual assets describes the rules used in the country to govern digital assets. It was introduced in May  2020 to determine the legal status of cryptocurrencies. After a few readings, the President returned the bill to the parliament for amendments.

He chose to go for amendments of the bill to minimize the expenses of forming a new regulatory body on digital assets. 

The news on Ukraine’s crypto regulation changes comes when war tensions between the country and Russia are ongoing. Reports say that Russia is still adding soldiers to their border even after promising to withdraw them. Amid the looming crisis, Russia is also actively figuring out the best regulation of digital assets.

According to Konstantin Yarmolenko, the head of advisors at the Parliamentary group Blockchain4Ukraine, Zalesnky should sign and publish the law within ten days. Local authorities will also sign a bill on the amendments to the country’s tax code. The new code addresses all issues surrounding the taxation of cryptos and digital assets.

Crypto Regulation and Adoption in Europe

Europe has some of the largest economies in the World. These economies work under different strategies, with some using trading blocs and others acting independently. 

Nonetheless, most of the country’s there are in the process of drafting crypto regulatory frameworks. Russia is among the European countries that have been making news. Its Central Bank is almost through with a CBDC project and proposes a blanket ban on other cryptos. However, almost every other authority in the country is against it.

The European Union is also exploring how to mitigate the effects of cryptos on financial systems. As a result, it has not advised the legalization of digital assets to its members. However, it has allowed the trading of less risky crypto products like BTC ETFs. Now it remains to be seen how the future will change crypto regulation status in Europe and the World.