According to local media, Ukraine has enacted legislation making cryptocurrencies and other digital assets legal in the country. Ukraine now has the power to legally control crypto tokens thanks to Bill No. 3637 on Virtual Assets.
Despite their victory, cryptocurrencies cannot be used to pay for goods and services. However, it does allow blockchain businesses to legitimize particular business activities and interact directly with the present financial system.
Citizens can also freely purchase and exchange cryptos at the moment. The hryvnia is still the only legal tender.
Due to a lack of legislation defining what a cryptocurrency is, digital currencies were neither lawful nor illegal before the bill’s passage.
Although crypto assets were bought and sold, there was no legal protection from the courts if something went wrong.
A Ministry of Digital Transformation spokesman told the Kyiv Post that Ukraine intends to open the cryptocurrency market to both companies and investors by 2022.
Before the market can be established, lawmakers must still adopt laws amending the Tax Code and the Civil Code, according to the spokesman.
According to the bill, cryptocurrency-related firms can operate in Ukraine, but only if certain conditions are met. For example, any cryptocurrency business wanting to set up shop in Ukraine must have a fantastic reputation and demonstrate its ability to be honest with regulators.
In addition, a $3,000 charge must be paid and any taxes incurred during operation. Ukraine thinks that these measures would reduce money laundering and financial terrorism.