Ukraine is hoping to attract foreign cryptocurrency exchanges with the new regulations. The country’s parliament has amended the country’s laws in order to attract more cryptocurrency companies and exchanges.
The Ukrainian government passed a law on September 8, 2021, that regulates cryptocurrencies and digital assets, which includes virtual currencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and others. It also allows foreign crypto exchanges operating in Ukraine to do business with local clients without any restrictions. Additionally, the law also establishes trading operations exclusively designed for high-volume trading operations.
The new legislation is built on the existing standards created by the FATF and will be applied to banks, credit institutions, electronic money institutions, and other financial providers.
Ukraine Ministry of Digital Transformation will be overseeing the implementation of a recently passed law that aims to provide a legal framework for e-assets in Ukraine, including blockchain technology. The Ministry of Digital Transformation will also be responsible for planning and developing the digital market in Ukraine.
Digital asset markets are gaining popularity in Ukraine. Anastasia Bratko, the Ministry of Digital Transformation head, told the media that they now allow companies to launch digital asset markets in Ukraine and banks to open cryptocurrency accounts.
Ukraine warmly welcomes foreign exchanges
Ukraine’s crypto-friendly law is a step towards cryptocurrency regulation in the country. It was created to encourage foreign crypto exchanges to operate in Ukraine. Ukrainian government is considering legalizing cryptocurrencies to attract businesses and foreign investors. The country has already made some changes to tax laws, trade regulations, capitalization laws & more in anticipation of this move.