Cryptocurrencies could soon be legalized in Ukraine, with a majority of parliament members voting in favor of adopting a law regulating virtual assets in the country, according to a report.

  • With 276 deputies voting in favor, the Verkhovna Rada of Ukraine passed the bill “On Virtual Assets,” which will regulate operations with cryptocurrencies after the second reading.
  • Virtual assets are recognized as intangible assets and cannot be exchanged for property or services. Such assets are also not recognized as a means of payment in Ukraine.
  • The draft law indicates that the issuer of VAs must be a resident of Ukraine. These may be secured by currency values, with turnover regulated by the National Bank and securities or derivatives regulated by the National Securities and Stock Market Commission.
  • The document categorizes virtual assets into secured and unsecured. Market participants will have the right to judicial protection of VA rights and independently determine the worth of VA during operations. They can also open bank accounts to settle VA transactions.

The law will take effect after the Tax Code is amended regarding the taxation of operations with virtual assets. BTC is down 8.76%, ETH down 8.71%, and XRP down 14.73%.