A draft law legalizing cryptocurrencies passed the second reading in the Ukrainian parliament on Sept. 8. Up until now, cryptocurrencies and digital tokens have been in a state of limbo, neither legal nor prohibited.
According to the Kyiv Post, 276 Ukrainian lawmakers voted for virtual asset bill 3637, which now paves the way for a regulatory framework and wider acceptance.
Once passed by President Volodymyr Zelensky, the new legislation will offer protection to crypto asset investors and exchanges from fraud.
According to the Ministry of Digital Transformation, Ukraine intends to open the cryptocurrency market for businesses and investors by 2022. However, before that can happen, parliament must pass a set of laws and amend the Tax Code and the Civil Code. According to the report, experts have stated:
“It defines virtual assets as intangible assets expressed in a form of electronic data. It also explains what a wallet for virtual currency and a private key is — these terms have never been used in Ukraine’s legislation.”