The parliament in Kyiv has passed legislation concerning crypto-related operations in Ukraine.

According to Bitcoin.com, the law on virtual assets recognises cryptocurrencies as intangible goods but deny them the status of legal tender. It also regulates the activities and obligations of crypto businesses.

The country’s parliament has adopted the law on virtual assets on second and final reading. This legislation regulates operations with cryptocurrencies within the nation’s jurisdiction. The law will be implemented when lawmakers approve amendments to the country’s tax code pertaining to the taxation of cryptocurrency transactions.

According to provisions in the new law, cryptocurrencies are virtual assets and are intangible goods, which can be secured and unsecured. However, they are not accepted as a legal means of payment in Ukraine and their exchange for other goods or services will not be allowed.

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According to the law, the term ‘financial virtual assets’ must be issued by entities registered in Ukraine. Should these assets be backed by currencies, they must be regulated by the National Bank of Ukraine. If the underlying asset is a security or a derivative, the National Securities and Stock Market Commission will be the main regulator.

The law allows crypto market participants to independently determine the value of virtual assets, open bank accounts to settle transactions, and seek judicial protection for associated rights. Also, it ensures service providers abide by the country’s anti-money laundering regulations and prevent attempts to finance terrorism using their platforms, just like traditional financial institutions

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