Ukraine collabs with international consultants to update crypto framework

Working on their national crypto framework, the amendments to the law “On virtual assets,” the Ukrainian regulatory community actively collaborates with international experts. The list includes the international consultancy firm Ernst&Young and the USAID Financial Sector Reform project.

On Dec. 1, the Advisory Council on the Regulation of Virtual Assets, organized by the National Securities and Stock Market Commission, held its first meeting. The regulatory experts discussed the amendments to the law “On virtual assets”, which should adjust the National Tax Code to crypto regulation. The event was attended by representatives of the President’s Office, the National Bank of Ukraine, expert organizations and the market community.

Ruslan Magomedov, the National Tax Agency of Ukraine chair, revealed that the regulators are working closely with Ernst&Young and the USAID to implement the European Markets in Crypto-Assets (MiCA) regulation in the Ukrainian virtual assets market.

As Yaroslav Zheleznyak, a member of the Ukrainian Parliament (Rada), noted, the national approach will rely on the “do no harm” principle:

“The goal is simple — to make crypto circulation in Ukraine legal and safe, but according to the principle of “do no harm”, so that the market receives not regulation, but incentives for development and competitive advantages”

Ukrainian President Volodymyr Zelensky signed the law “On Virtual Assets” in March 2022. The bill establishes the National Securities and Stock Market Commission of Ukraine and the National Bank of Ukraine as two major regulators of the crypto market.

In November, a group of pro-crypto Ukrainian lawmakers and the public union Virtual Assets of Ukraine (VAU) revealed a joint roadmap for promoting and developing Web3 in the country. The roadmap proposes the launch of a regulatory sandbox for blockchain and Web3 projects. It also implements the creation of a national blockchain-backed land and realty register and the integration of Ukraine into the European Blockchain Partnership.