Ukraine | The Verkhovna Rada passes law on virtual assets

19/10/2021

On 8 September 2021, the Verkhovna Rada of Ukraine adopted Law “On Virtual Assets” (hereinafter – the “Law”), which for the first time formally defined the state policy on the circulation of virtual assets (hereinafter “VA”), rights and obligations of participants in the VA market, and other aspects of dealing with them. At the same time, the Law provides a framework for the regulation of activities related to the circulation of cryptocurrency in Ukraine.

The Law contains the following key provisions:

• A VA definition has been given; they are now treated as intangible assets that is an object of civil rights, has a value and is expressed in an aggregate of data in electronic form;
• VA classification into secured and unsecured (depending on the possibility to verify property rights);
• Peculiarities of VA creation, their introduction into the civil circulation and withdrawal from it were determined;
• A list of economic activities that require a permit to provide services related to the turnover of VA is provided;
• Requirements to legal entities – providers of services related to the VA turnover have been defined, in particular: impeccable business reputation of the management, amount of the minimum charter capital, etc.;
• The powers of the state authorities in the area of VA turnover are regulated.

It should be noted that, according to the Law, VA are not a means of payment in Ukraine and may not be exchanged for property (goods), works (services).

The Law shall come into force simultaneously with the law on amendments to the Tax Code regarding taxation of transactions with VA, but not earlier than the day of this Law publication.

It should be mentioned that at the moment the Law is in the stage of revision after the President of Ukraine returned it to the Verkhovna Rada with his comments.

How SCHNEIDER GROUP can help

If you are planning to provide services related to VA turnover, contact us. SCHNEIDER GROUP experts in Ukraine will advise you on VA activities, obtaining approval documents and also answer your other questions related to this topic.

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