Ukraine Publishes New Draft Bill On Virtual Assets For Public Discussion
Ukraine Publishes New Draft Bill On Virtual Assets For Public Discussion
May 23, 2020
Ukraine Publishes New Draft Bill On Virtual Assets For Public Discussion
Ukraine Publishes New Draft Bill On Virtual Assets For Public Discussion
May 23, 2020

On May 18, the Ministry of Digital Transformation of Ukraine published a new draft bill “On Virtual Assets” that aims to determine the legal status of crypto assets, rule of their circulation and issuance in the country.

However, the current version of the bill is not final and is open for discussion by the crypto community until June 5, 2020.

The main purpose of the new draft bill is to finally enable local crypto firms like exchanges to open bank accounts, according to one of the co-authors.

Michael Chobanian, the president of the Bitcoin Association Ukraine, an organization that co-authored the new bill alongside state authorities, law firms and industry players.

Chobanian says that crypto exchanges are still unable to set up a bank account in Ukraine to date. Therefore, the proposed draft bill is designed to finally bring legal presence to companies in Ukraine.

According to the bill, virtual asset service providers like crypto exchanges, issuers and users:

ALSO READ :  Chinese Ride-Sharing Giant DiDi Chuxing Joins Digital Yuan Project

“have the right to open accounts in banking and other financial institutions.”

However, unlocking sufficient benefits for the crypto industry in Ukraine has its costs though. Andriy Khavryuchenko, founder of software firm DevNull.AI, points out:

According to the draft law, local firms are required to register in order to operate a fiat-to-crypto business in Ukraine legally.

Chobanian elaborates:

“If you do it without the registry, you are basically illegal, that’s what the law says.”

Such firms will have to ensure Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance.

According to Chobanian, the new bill comes in response to a request by the Financial Action Task Force, or FATF. Last year, they announced that they would seek to adopt AML guidelines for crypto by June 2020.

In late 2019, the Ministry of Digital Transformation of Ukraine reportedly partnered with the Binance, to collaborate on local crypto legislation.

ALSO READ :  Brave Launches In-Browser Video Calls Featuring End-To-End Encryption

However, Chobanian states that Binance has not participated in authoring the bill “On Virtual Assets”, but is expected to give their feedback about the proposed law.

Source: Cointelegraph | Image: Pixabay


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Jafrin Ahmed

Crypto newbie passionate about creating resourceful content on blockchain technology, cryptocurrencies and decentralized apps.
Share This

Share This

Share this post with your friends!