Market Analysis Report (18 Feb 2022)

Ukrainian legislators voted to legalize cryptocurrencies on Thursday, making it easier for them to be used in the country amid heightened tensions with Russia.

Bill no. 3637, or the Law of Ukraine on Virtual Assets, was passed by the Verkhovna Rada, the Ukrainian Parliament, with 272 votes, while only needing 226 to pass. Ukraine’s minister of digital transformation, Mykhailo Federov, said on social media that the move will reduce corruption risks and prevent fraud in crypto exchanges.

The bill contains requirements cryptocurrency service providers, such as exchanges, should abide by, and determines fines for violations of the law’s provisions. It also determines the country’s National Securities Commission is to regulate the cryptocurrency market, issuing permits to service providers and monitoring activities.

In early October, President Volodymyr Zelensky vetoed a bill calling for the creation of an independent regulatory body to oversee cryptocurrency exchanges, saying it wasn’t in the county’s budget and the bill should be revised.