Rada approves bill on virtual assets accepting president remarks

18 February 2022

Ukraine’s parliament voted again on Feb. 17 in favor of bill #3637 On Virtual Assets, which determines and sets a regulatory framework on such assets, their circulation and their exchange in Ukraine. The bill was first approved in September, but later was vetoed by the president  who opposed the creation of a special government body to regulate virtual assets. The updated bill foresees that currency-backed assets will be regulated by the central bank and security-backed assets will be regulated by the securities commission.

 

The bill specifies that virtual assets are not a means of payment in Ukraine and that such assets cannot be exchanged for goods and services. Instead, they can be exchanged for Ukrainian currency (and other currencies, based on the central bank’s approval) or other virtual assets.

 

Alexander Paraschiy: It is very likely that the updated bill will come into law, thus creating new segments in Ukraine’s financial markets. The contribution of such a segment to Ukraine’s economy is hard to estimate now, while we expect the positives will outpace the potential risks related to the circulation of virtual assets.