Ukraine parliament approves crypto legislation amidst rising geopolitical tension

Verkhovna Rada, the Parliament of Ukraine, has approved significant amendments in the country’s cryptocurrency bill, “On Virtual Assets.” Proponents consider the amendment bullish for the adoption of cryptocurrencies in Ukraine. 

Ukraine passes legislation on cryptocurrency bill amendment

While geopolitical tension rises, cryptocurrencies have suffered a bloodbath. Ukrainian Rada has passed the legislation in the second reading despite the dropping price and market capitalization, with 272 out of 365 deputies supporting the bill. 

The Ministry of Digital Transformation is no longer on the list of authorities overseeing the cryptocurrency market. The Parliament has appointed The National Securities and Stock Market Commission of Ukraine or NSSMC to regulate the cryptocurrency market. 

The updated version of the cryptocurrency bill appoints the two significant authorities National Bank of Ukraine and the NSSMC, as regulators of the crypto market. 

The authorities have been appointed to oversee the turnover of assets backed by currency valuables. Cryptocurrency assets and derivative financial instruments would be regulated under the new provisions. 

Alex Bornyakov, the Deputy Minister of Ukraine’s Ministry of Digital Transformation, believes that the ministry’s latest moves indicate an acceptance of cryptocurrencies in Ukraine. 

The country first started working on its crypto bill in November 2021, adopting cryptocurrencies to become a leader in the ecosystem. However, the initial crypto bill was sent back to the Parliament for further consideration. 

The news of the amendment is considered positive for adopting cryptocurrencies in Ukraine. This could contribute to a rise in demand in times of geopolitical tension.