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November 27, 2022
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Ukraine will legally regulate payments in bitcoin

The deputy minister of the Ukrainian Ministry of Digital Transformation believes that cryptocurrency payments will be allowed in Ukraine, as will dollar-based payments. This is to be made possible by a new, special law that the government is working on.

Ukraine will open up to bitcoin?

The new law is said to allow Ukraine to make payments in cryptocurrencies, despite the fact that the country does not recognize cryptocurrencies as a legal tender. The above was confirmed by an important government official.

Deputy Minister of the Ukrainian Ministry of Digital Transformation Oleksandr Borniakov is convinced that “It would be quite legal to pay with cryptocurrencies” in Ukraine, e.g. through payment intermediaries that enable the conversion of cryptocurrencies into fiats.

However, the official also said in Friday’s interview with Minfinthat the Ukrainian bill on virtual assets “Clearly states”, that cryptocurrencies are not legal tender in the country. The draft new law stipulates that local payment processors will still be able to provide cryptocurrency-to-fiat conversion services. All this to enable payments in digital currencies.

– Today, legislation in Ukraine also does not allow you to pay in dollars, but you can easily pay for purchases with a dollar card. Currencies are converted immediately upon payment. […] Therefore, it will be quite legally possible to pay with cryptocurrencies in Ukraine, but through an intermediary – explained the deputy minister.

Borniakov also noted that the new law will officially sanction the cryptocurrency trading process and reporting issues.

– We expect an entire market of brokerage services for cryptocurrency payments, storage and exchange. This will expand the possibilities of their use – added.

“About virtual assets”

We know that the Ministry of Digital Transformation has instructed the parliament to vote in second reading the updated draft law “On Virtual Assets”. Local e-bank Monobank even subsequently revealed plans to launch a debit card to support bitcoin trading.

In addition, the President of Ukraine, Volodymyr Zelensky, has already signed another law on digital currency, known as the Payment Services Act. On June 30, the law was passed in the Ukrainian parliament – the Verkhovna Rada.

The new law officially allows the Ukrainian central bank to issue the digital currency of the central bank, the digital hryvnia. We wrote about it here.

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