Ukraine’s president legalized crypto in the country

The head of state signed the law “On Virtual Assets”

17.03.2022 - 07:55

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The head of state signed the law “On Virtual Assets.”

What’s new? On March 15, Ukraine’s President Volodymyr Zelenskyy signed the law “On Virtual Assets.” The document set out the rules for the operation of market participants, taxation, income declaration, and interaction with regulators. The law will come into force after the adoption of the relevant amendments to the Tax Code of Ukraine.

The full version of the law on the website of the Verkhovna Rada

What is important to know about the new law? The document defines the term virtual asset as an intangible benefit, which has a value, can be expressed in electronic form, and is not an object of civil rights. In this, virtual assets cannot be used as a means of payment, nor can they be exchanged for goods or services.

The regulation of the crypto market is entrusted to two agencies. The National Bank of Ukraine will be responsible for assets secured by currency values, while the National Securities and Stock Market Commission will be responsible for all other types of virtual assets.

The law establishes the rules of taxation for individuals, as well as introduces the concept of “service provider” for companies that want to operate legally in Ukraine. For more details on taxes on activities with digital assets and licensing of legal entities, see our detailed review of the law “On Virtual Assets.”

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