Ukraine to draft cryptocurrecny legalization legislation

According to a Facebook post by Alexei Mushak, a member of the Ukrainian parliament on Tuesday, May 15, Ukraine is working on draft legislation to make cryptocurrencies legal. Mushak shared a copy of the draft legislation document, telling readers to leave their comments on the terms of the proposed regulations cryptocurrencies.

As revealed by the document, the legislation plans to develop a “free and transparent” cryptocurrency market in Ukraine. It also highlights rules for saving, exchanging and using digital tokens, smart contracts and digital currencies at a country, individual, and entity level. It tenders regulatory steps for fighting the use of digital currencies for terrorist financing, money laundering, and other illicit ventures.

The document also supports the blockchain, also known as digital ledger technology (DLT) in the tech sphere, citing healthcare, public relations, and education as the particular area of interest.

The draft legislation document, since it was shared, has already attracted extensive remarks from Ukrainian readers, with one suggesting that the country regulates Initial Coin Offerings (ICOs) differently to other cryptocurrencies, as the fraud in the ICO sector is depicting the cryptocurrency space as a place not to be trusted. In response, Mushak said there is as yet little agreement in the Ukrainian parliament as to how to deal with ICOs, as the parliament is concerned that too strict rules could reduce development.

As announced in May, the Ukrainian National Securities and Stock Market Commission (SSMCS), said it would take steps to recognize digital assets as a financial instrument, suggesting that cryptocurrency regulations determined on a national level for now.

The National Bank of Ukraine (NBU) said in January that it was contemplating launching a digital version of the hryvnia, its national currency, but one that won’t be based on a blockchain protocol, but will be issued by the state.

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