Ukraine Commits to Adopting EU Crypto Asset Regulations

Following the European Parliament’s approval of the Markets in Crypto-Assets (MiCA) regulation, Ukrainian authorities have publicly declared their intention to adopt this legislative package within their own country.

According to a report by Cointelegraph, Yaroslav Zheleznyak, the Deputy Chairman of the Tax Committee of Ukraine, announced on his Telegram channel on April 20th that they are collaborating with the National Commission for Securities and the Stock Market (NKCPFR) and other regulatory bodies to implement certain provisions of MiCA, thereby legalizing crypto assets in Ukraine. A member of the NKCPFR, Yurir Boyko, expressed confidence that Ukraine would be among the first countries to incorporate this regulation into their national legislation.

The adoption of MiCA is expected to support startups within the EU, potentially increasing their market share compared to unregulated competitors. The European Parliament’s recent approval of this legislation marks a significant milestone for the crypto industry within the European Union.

MiCA is the European Union’s first-ever legislation for tracking crypto-asset transfers. It aims to deter money laundering, establish standard supervision, and provide consumer protection guidelines. The legislation subjects crypto transfers to the “travel rule,” which is already applicable in traditional finance. This rule mandates that transaction information, including the source and recipient of the asset, be documented and stored on both ends of the transfer.

The MiCA framework, agreed upon with the Council in June 2022, contains provisions to prevent market manipulation and financial crime. 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.

Ukraine’s decision to adopt the EU regulations follows the country’s achievement of candidate status for the EU in June 2022. The European Council has recognized Ukraine’s efforts to meet the objectives underlying its candidate status for EU membership.

The introduction of customized regulations for the crypto industry in one of the world’s largest markets aims to protect users and foster innovation. Major players like Binance are prepared to modify their business operations over the next 12-18 months to achieve full compliance with the new EU regulations.

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