In the space of a year, Ukrainian cryptocurrency policy has changed a lot. In mid-March, after the stalemate of the conflict between it and Russia, Ukraine had received several donations in crypto. In the process, the country decided to legalize digital currencies before acquiring the status of candidate for membership of the European Union a few months later. Currently, the country of Volodymyr Zelensky is working to bring the legal standard for cryptocurrencies adopted at the beginning of the year into line with European laws.
Ukraine will align its legislation with the European standard
At the beginning of the year, Ukraine struck a blow by adopting cryptocurrencies. The country then enacted a bill “on virtual assets”. This text then served as a legal framework for the country’s crypto space, with the only difference that it did not fully align with European law. On the other hand, the political context of this Eastern European nation now requires it to comply with the legislation in force in the European Union. This follows its new status as a candidate for EU membership.
It was the Ministry of Digital Transformation of Ukraine which announced that work was underway, so that the country’s cryptocurrency framework law complies with the provisions of the European MiCA regulation. We have to go back a year to see the first adoption of a crypto law by parliament. We remember that Volodymyr Zelensky, the President of the Republic, had made some amendments. It was finally in February that the final adoption by the Verkhovna Rada. A month later, the Head of State signed and promulgated the law. With these changes coming, it stands to reason that a lot will change in the country’s crypto landscape.
What will change with the new Ukrainian law on virtual assets?
Several Ukrainian institutions are in the oven and the mill for harmonize national crypto legislation with the European standard. The changes won’t be superficial, they could be quite profound. Experts expect the prevailing cryptocurrency classification and initial offerings to change.
As for the date of adoption, we will have to wait a little longer for the bill to be tabled in parliament. According to the information at our disposal, everything could be ready by the end of the year. This update of the law on virtual assets is essential for implement new taxation rules in crypto.
These efforts by the Ukrainian government to tie in with community standards on crypto are not trivial. They testify to the country’s desire to assert itself as a giant in terms of the adoption of cryptocurrencies in Eastern Europe. According to figures from Chainalysis, a blockchain analysis company, Ukraine occupies the podium of the countries with the highest index of adoption of cryptos in the world.
Conclusion
Since acquiring its new status as a candidate country for EU membership, Ukraine has had to change its legislation. The Parliament, the Council and the Commission are unanimous, the MiCA regulation must apply in all Member States.
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