Ukraine has announced its commitment to adopt the European Union’s new regulation on Markets in Crypto-assets (MiCA) which aims to provide a clear and comprehensive legal framework for the European crypto industry.
The European Parliament approved MiCA on April 20, and the new legislation will be implemented in 2025. It will cover crypto-assets not currently regulated by existing financial services laws, targeting transparency, disclosure, authorization, and supervision of transactions for those issuing and trading crypto-assets.
Yaroslav Zheleznyak, deputy chairman of the Ukrainian Tax Committee, declared on his Telegram channel on April 20 that his Committee is working with the National Commission for Securities and the Stock Market (NSSMC) and other regulatory organizations to put some MiCA provisions into practice.
Additionally, Yurir Boyko, a member of the NSSMC, voiced his optimism that Ukraine would be one of the first nations to include this law in its national legislation.
Ukraine boasts crypto-friendly regulation
Ukraine’s decision to adopt the EU regulations follows the country’s achievement of candidate status for the EU in June 2022.
According to some experts, the country’s adoption of MiCA could boost its chances of joining the EU and attracting more foreign investment and talent to its burgeoning crypto sector.
Ukraine’s president, Volodymyr Zelenskyy, signed legislation making cryptocurrency legal in the battle-scarred nation in March 2022.
The law allowed foreign and Ukrainian crypto exchanges to operate lawfully in Ukraine, marking an important step toward building a legal market for virtual assets.
Furthermore, for the first time in Ukraine, the new law established a legislative framework for an open crypto market.
The new law also put the NSSMC in charge of regulating the new crypto assets market. It also specified fines for infractions and legal safeguards for investors against fraud.
The country’s Ministry of Finance would also be “actively working to amend the Tax and Civil Codes of Ukraine to fully launch the market for virtual assets.”
Since the law’s inception, Ukraine has been ranked as one of the most crypto-friendly countries in the world by several reports and has seen a surge in crypto adoption among its citizens and businesses.
The country has also been exploring using blockchain technology for various public services, such as e-voting, land registry, and digital identity.