The Ukrainian parliament has released an updated version of the draft law “On Virtual Assets.” The revised bill requires exchanges to obtain government authorization, disclose their ownership and implement mandatory KYC procedures. The document has been criticized by regulators in Kyiv but the government wants the legislation passed before the parliament’s summer break.
Draft Law Proposes Regulations for Cryptocurrencies in Ukraine
Ukrainian lawmakers have revised the draft law designed to regulate the country’s expanding crypto space. The deputies have introduced a number of amendments since December when it was voted on first reading in the Verkhovna Rada, Ukraine’s parliament. The latest version of the document was released this week by the parliamentary Digital Transformation Committee which recommended its adoption.
The bill recognizes a virtual asset as an “intangible good” that has value and is an “object of civil circulation,” Forklog reported. Virtual assets can “certify property or non-property rights,” including “rights to claim other objects of civil rights,” the publication detailed. The draft also distinguishes between financial instruments and virtual assets backed by currencies.
One of the key regulations concerns cryptocurrency exchanges and exchangers. To operate legally, they will have to be authorized by the Ministry of Digital Transformation. Crypto service providers will be obliged to reveal their ownership structure and monitor financial transactions to prevent money laundering. The permits will be valid for a period of one year. Russian platforms will not be allowed to do business in Ukraine.
Another important aspect is the introduction of mandatory identification and verification procedures. As part of the know-your-customer (KYC) process, individuals will be required to provide IDs, bank accounts and information about their electronic wallets. Companies will also have to…